Answer:
B. There was an improper cutoff of sales at the end of the year.
Explanation:
Sales cuttoff focuses on whether sales are properly reccorded for a particular period.
Answer: 83.53 days.
Explanation:
We would need to calculate the Current Assets as well as the Quick Assets.
Calculating the Current Assets we can use the Current ratio and Current Liabilities as follows,
Current Assets = Current Ratio * Current Liabilities
= 1.22 * 28,000
= $34,160
Then we calculate the Quick Assets which are essentially the most liquid assets being Cash and Cash Equivalents,
= Quick Ratio * Current Liabilities
= 0.71 * 28,000
= $19,880
Inventory will be Current Assets minus Quick Assets because Current Assets include all Current Assets whereas Quick Assets are Cash And Cash Equivalents Current Assets
= 34,160 - 19,880
= $14,280
We can then calculate the Inventory Turnover as,
= Cost of Goods sold / Inventory
= 62,400/14,280
= 4.36974789916 times.
Now we can finally calculate the days of Inventory by dividing the days in a year by the Turnover ratio. We will assume a 365 year.
= 365/4.36974789916
= 83.53 days.
It takes 83.53 days on average does it take to sell the inventory.
Answer:
Vaporware
Explanation:
Vaporware is a product, which is generally software or hardware and it is announced in the public, however, it never got released nor it got cancelled or it missed the release date by many days. Vapor is used in the name to indicate that its advertisement is full of hot air with no substance. This issue been taken care to have fair competition in the industry.
In the given scenario, company choosing delay release until the bugs can be worked out is an example of Vaporware.
