Answer:
A) 100
Explanation:
total sales 3,600 units
cost per unit $200
cost of placing order $40
holding cost $20 per year
working days 360 per year
lead time 5 days
If Mark orders 200 units each time, his average inventory ?
daily sales = total sales / working days = 3,600 / 360 = 10 units per day
number of orders per year = 3,600 / 200 = 18
Mark places one order every = 360 days / 18 orders = 20 days
average inventory = (200 units / 20 days) x 10 days = 100
I assume that mark has some type of safety stock that allows him to hold enough inventory to cover for the 5 day lead time.
Answer:
25%
Explanation:
The formula to compute the equity in the long margin account is
long market value - debt = equity
Also we know that the account will be at maintenance if the equity is 25% of the long market value
Here 25% represents the equity so 75% would be debit
And, the drop in the market value is of
= $90,000 ÷ 0.75
= $120,000
So at this point, the equity is $30,000
Now the margin percentage is
= $30,000 ÷ $120,000
= 25%
Answer: Opening
Explanation:
The opening position is the first offer that is given. This offer is usually not indicative of the full capability of the party offering. In other words, this position is the ideal position for the party offering it but they can be persuaded to give a position that would not be as beneficial to them.
Annette plans to offer a two times a month pickup and this would be ideal for Jackson Hauling because they are still small-time and would benefit from not being overburdened. This is why it is her opening position. She can however, be persuaded to do a twice weekly pickup but that wouldn't be very beneficial.
Answer:
The prepaid amount of $4,944 ($9,888/2) should be reported as Prepaid Insurance in the Current Assets side after the Accounts Receivable balance.
Explanation:
Prepaid expense is one of the items adjusted at the end of the accounting period. The purpose is to remove the prepaid element from the total amount so that only expenses relating to the current period are reported in the current period's income statement. This is in line with the accrual concept and the matching principle of generally accepted accounting principles. These require that expenses and revenue are matched to the period under which the expenses are incurred or the revenue earned, and that expenses are matched to the revenues they generated, and vice versa.
