What is a delivery gap?

Dunn Sporting Goods sells athletic clothing and footwear to retail customers. Dunn's accountant indicates that the firm's operat

Brilliant_brown [7]

Answer:

Dunn Sporting Goods

Identifying Current Assets and Current Liabilities

Current Assets:

1. Prepaid Rent $6,000

3. Inventory $46,230

4. Marketable securities $700

5. Cash $1,050

7. Account receivable $2,850

Current Liabilities:

2. Accounts payable $9,700

6. Interest Payable $4,500

Explanation:

a) Data and Analysis:

1. Prepaid Rent (Current Assets) $6,000 Prepaid Rent (Long-term Assets) $2,500 in the amount of $8,500. Dunn's rent is $500 per month.

2. Account payable $9,700

3. Inventory (Current assets) $46,230.

4. Short-term marketable securities $700 Long-term Investments $1,200

5. Cash (current assets) $1,050.

6. Loan Payable (long-term) $60,000 due in March 2024. Interest Payable (current liabilities) $4,500

7. Account receivable (Current assets) $2,850

8. Store equipment $9,200. Accumulated depreciation $1,250.

b) Current assets are short-term assets expected to be used up within 12 months while current liabilities are short-term assets expected to be settled within 12 months.

8 0

3 years ago

The Dlabay Company had a quick ratio of 1.4, a current ratio of 2.75, an inventory turnover of 6 times, total current assets of

Gnesinka [82]

Answer:

Annual sale is $2,282,728.80 and ACP is 44.87 days

Explanation:

Since the annual sales are not given, so first we have to compute the current liabilities amount, then inventory amount, after that, only the sales amount could be found

So, the current liabilities = Current assets ÷ current ratio

= $775,000 ÷ 2.75

= $281,818

Now the quick ratio = (Current assets - inventory) ÷ current liabilities

1.4 times = ($775,000 - inventory) ÷ $281,818

$394545.20 = $775,000 - inventory

So, inventory = $380,454.80

Now, the inventory turnover equals to

Inventory turnover ratio = (Turnover ÷ average inventory)

6 times = Annual sales ÷ 380454.80

So, annual sales = $2,282,728.80

The computation of the ACP is shown below:

= (Account receivable ÷ credit sales) × 360 days

Since account receivables is not given so first, we have to calculate it which equals to

= Current assets - cash - inventory

= $775000 - $110,000 - $380,454.80

= $284545.20

Now put these values to the above formula

So, the value would equal to

= ( $284545.20 ÷ $2,282,728.80) × 360 days

= 44.87 days

5 0

3 years ago

Which of the following is true about multicollinearity?

Komok [63]

Answer:

d. It is best measured using the statistic variance inflation factor (VIF).

Explanation:

Multicollinearity is an important issue in multiple regression model, having many independent/ explanatory variables. Multicollinearity is the situation in which two or more independent variables are highly correlated. It is problematic because it increases the standard error of independent variable coefficient & undermines its statistical significance

Variance Inflation Factor [VIF] is a check & corrective measure of multicollinearity.

VIF as a multicollinearity check : It quantifies the correlation between one explanatory variable with other explanatory variables.VIF = 1 implies there is no multicollinearity (correlation between independent variables); VIF upto 5 implies there is moderate multicollinearity (correlation between independent variables). VIF > 5 implies high multicollinearity (correlation between independent variables)
VIF as a multicollinearity correction : Calculating $Var (\beta j )$ = σ^2 / $[TSS j (1 - R^2j)]$ ; where TSS = total sum of square of variable j , σ^2 = j variance, R^2 j = R^2 from regressing all other independent variable on variable j

3 0

3 years ago

sales of new homes increased each month of the last year the economy is likely in. recession. expansion a trough or a plummet

olya-2409 [2.1K]

Expansion ..............

5 0

3 years ago

PLs sum body help me with getting my man bck

OLga [1]

Answer:

You have to show him you really want him back. If you really like him, you have to fight for him. (not literally. that'll put you in Subject: Psycho at the Insane Asylum) You have to show him you care and that whatever happened to make him want to leave you shouldn't keep you two apart. And if you do take my advice, show him that you wanted him back so bad you resorted to Brainly. And make sure to tell him to say thank you to me for giving him the love of his life back cause im sure you're a good one since you care so much! GO GET HIM, TIGER

8 0

2 years ago