Answer:
the cash that should be freed up is $267
Explanation:
The computation of the cash that would be freed up is shown below:
As we know that
The inventory turnover is
= Cost of goods sold ÷ average inventory
12 = $14,800 ÷ average inventory
So, the average inventory is 1,233
Now the cash that should be freed up is
= 1,500 - 1,233
= $267
hence, the cash that should be freed up is $267
Answer:
The borrower records its receipt of cash and new liability with this entry
Jan 1 Notes Receivable $10,000 Dr.
Sales / Accounts Receivable $10,000 Cr.
Received Note of 3 months with 9% interest
The entry would credit to Sales if it is received against sales or credit to account receivable isf it is received against accounts receivable for a further time period as the case may be.
Answer: Asset allocation
Explanation:
Asset allocation refers to the strategy of investing in different types of assets and investment vehicles so that the risks would be balanced by the rewards to be earned so that the investor will benefit.
Asset allocation is usually based on the investor's investment goals and their risk appetite. Those who are more risk tolerant will usually invest more in stocks so Siiri here is most likely risk averse but based on the percentage that went into stocks, they might be more risk neutral.
Answer:
A. $3,500 gain
B. -$4,400 loss
Explanation:
A. Calculation for the amount of the gain or loss on the sale
Gain or loss on sale=$12,500-$9,000
Gain or loss on sale=$3,500 gain
Therefore the amount of the gain on the sale is $3,500
B.Calculation for the amount of the gain or loss on the sale
Gain or loss on sale=$4,600-$9,000
Gain or loss on sale=-$4,400 loss
Therefore the amount of the loss on the sale is
-$4,400 loss
Answer: True
Explanation:
Low Margin items refer to those that have a lower profit per unit because their costs may be higher in relation to their selling price.
High margin items are the opposite.
If the company switches from High Margin items to Low margin items, they will face a situation where they are incurring more costs per sale which would drive their profits down even if sales increase.
The optimal mix for a company should have more high margin items than low margin items.
