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astra-53 [7]
3 years ago
9

Consider a firm with an annual net income of $20 million, revenue of $60 million and cost of goods sold of $25 million. If the b

alance sheet amounts show $2 million of inventory and $500,000 of property, plant & equipment, what is the inventory turnover? A) 12.50 B) 10.00 C) 42.00 D) 4.16 E) 20.00
Business
2 answers:
Jobisdone [24]3 years ago
5 0

Answer:

12.50 times

Explanation:

Inventory Turnover = Cost of Sales / Inventory

                                = $25,000,000/ $2,000,000

                                = 12.50 times

vodomira [7]3 years ago
5 0

Answer:

A) 12.50

Explanation:

Inventory turnover is the ratio that how many time a business has sold or replaced the inventory during a given period. A business is considered more profitable if it has high inventory turnover.

Inventory turnover = Cost of Goods Sold  / Inventory value

Inventory Turnover = $25,000,000 / $2,000,000

Inventory Turnover = 12.50 times

The firm can can sell 12.5 times the same value of inventory i a year.

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Suppose there is a simultaneous increase in demand and decrease in supply, what effect will this have on the equilibrium price?
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If demand increases at the same time as supply increases, as is the case in the scenario depicted, the new equilibrium price will be greater than the initial equilibrium price.

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5 0
2 years ago
Mrs. Beld sold marketable securities with a $79,600 tax basis to her daughter for $60,000 cash. Two years later, the daughter so
Ksenya-84 [330]

Answer:

$13,400

Explanation:

Data provided in the question:

Tax basis of marketable securities = $79,600

Amount for which securities sold to daughter = $60,000

Amount for which daughter sold the  securities = $93,000

Now,

Mrs. Beld disallowed loss on the related party sale to her daughter

= Tax basis of marketable securities - Amount for which securities sold to daughter

= $79,600 - $60,000

= $19,600

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8 0
3 years ago
Maren received 10 NQOs (each option gives her the right to purchase 8 shares of stock for $8 per share) at the time she started
bonufazy [111]

Answer:

Option (b) is correct.

Explanation:

Sale of share = NQOs received × No. of shares × Selling price per share

                      = 10 × 8 × $22

                      = $1,760

Gain realised:

= Sale of share - Basis

= $1,760 - [NQOs received × No. of shares × Selling price per share at $15]

= $1,760 - [10 × 8 × $15]

= $1,760 - $1,200

= $560

Tax paid = Gain realised × preferential rate

               = $560 × 15%

               = $84

6 0
3 years ago
The number of shares that a corporation's incorporation document allows it to sell is referred to as
SashulF [63]

The number of shares that a corporation's incorporation document allows it to sell is referred to as authorized shares.

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6 0
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