All categories

3 years ago

Question 14 which one of these actions will increase the operating cycle? assume all else held constant.?

Business

1 answer:

Murljashka [212]3 years ago

7 0

The complete question is as follows:

Which one of these actions will increase the operating cycle? Assume all else held constant.

A. Increasing the payables period.

B. Decreasing the average inventory level.

C. Increasing the inventory turnover rate.

D. Decreasing the receivables turnover rate.

E Decreasing the payables period.

Answer : Which one of these actions will increase the operating cycle? Assume all else held constant.

A. Increasing the payables period.

B. Decreasing the average inventory level.

C. Increasing the inventory turnover rate.

D. Decreasing the receivables turnover rate.

E Decreasing the payables period.

Answer : D. Decreasing the receivables turnover rate.

We can calculate the operating cycle with the following formula :

Operating cycle = Days' sales of Inventory + Day Sales outstanding

$Operating Cycle = [365/(Purchases/Average inventory)] + [365/(Net credit Sales /Average accounts receivable)]$

In the formula above, (Net credit Sales /Average accounts receivable) is known as the accounts turnover rate. A decrease in rate means that a company is taking more time to collect its receivables from its customers than ever before. This, in turn will result in an increase in day sales outstanding and hence, increase the operating cycle.

You might be interested in

During January 2017 General Fund supplies ordered in the previous fiscal year and encumbered at an estimated amount of $2,000 we

Norma-Jean [14]

Answer:

The correct answer is:

Expenditures—2017 in the amount of $200. (C.)

Explanation:

This scenario describes a record that was less than the actual amount spent on the General Fund supplies. The amount recorded was $2,000, meanwhile the actual amount spent was $2,000. This entails that an amount worth $200 was not recorded, hence it will be debited as expenditures, but the question now is where the debit will be recorded?

This review was done in January 2017, meaning that the income statement for the 2016 Fiscal year must have been balanced, hence the amount will be an expenditure recorded in 2017, but the particulars will have a description that it was a carried over expenditure from 2016. Therefore $200 will be debited from 2017 as expenditures.

5 0

3 years ago

Hello, im stuck. if i could get some ideas for this i will mark you brainliest if i can.

Shtirlitz [24]

Answer: so you are giving someone instructions like how to make a sandwich with a lot of detail so someone could do everything you did :)

Explanation:

✪ ω ✪

3 0

3 years ago

A survey of 50 retail stores revealed that the average price of a microwave was $375 with a sample standard deviation of $20. As

ohaa [14]

Answer:

True cost of the microwave is in 99% confidence interval: $c. $323.40 to $426.60$

Explanation:

Relevant data:

$n=50\\\mu=375\\\sigma=20\\\alpha=0,001$

As we want to know the 99% confidence interval, the significance level is:

$(1-\alpha).100\%=99\%\\1-\alpha=0.99\\\alpha=0.01$

We need to estimate a confidence interval by a two tailed normal bell. Then we have:

$Z_{\alpha/2}=Z_{0.005}$

The z-value for a probability of 0.005 in a normal standard distribution is 2.576

Confidence interval is given by;:

$\=x\±Z_{\alpha/2}\sigma\\375\±Z_{\0.005}(20)\\375\±(2.58)(20)\\375\±51.60$

$375+51.60=426.60\\375-51.60=323.40$

True cost of the microwave is in 99% confidence interval: $c. $323.40 to $426.60$

6 0

4 years ago

Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $49,0

natima [27]

Answer:

a. Dr Bad debt expense $1,617

Cr Allowance for doubtful debt $1,617

b. Dr Bad debt expense $2,205

Cr Allowance for doubtful debt $2,205

Explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

Estimated uncollectible amount

= 5% × $49,000

= $2,450

As such, if the allowance for doubtful;

has a $833 credit balance before the adjustment

Additional allowance required

=$2450 - $833

= $1,617

Entries required are

Dr Bad debt expense $1,617

Cr Allowance for doubtful debt $1,617

b) a $245 debit balance before the adjustment.

This means that off the amount uncollectible $245 has already gone bad

Adjusting entries required amounts to

= $2450 - $245

= $2205

Dr Bad debts expense $2205

Cr Allowance for doubtful debt $2205

7 0

3 years ago

The demand curve has what kind of slope?

Leto [7]

It is a graph that shows the relationship between the quantity demanded of a commodity at different prices over a given period of time. It is observed that the demand curve slopes downward from left to right. It shows it has a negative slope which implies that consumers purchase more of commodity at lower prices than at higher prices.

Hope this helps and pls give me brainliest

8 0

3 years ago