<u>Solution and Explanation:</u>
The following formula is used in order to calculate the days sales outstanding:
Days sales out standing = ( Accounts receivable divided by Sales ) multiply with 365
= $1.5 million divided by $12 million multiply with 365
After calculating we get, 45.625 days
<u>In order to calculate the capital released, the following formula is used:
</u>
= 513699
Therefore, the capital released is $513699
Answer:
Ricardo’s Theory of Comparative Advantage
Explanation:
Comparative advantage is the term used to define the ability of an individual, firm or country to produce a particular good or service at a lower opportunity cost than that if it’s competitors or trade partners. Opportunity cost is the benefit lost from the second best alternative.
When a country can produce a product more efficiently (i.e maximum output using minimum resources) than that of its trade partners, it is known as that it has absolute advantage in that product. India tends to have absolute advantage in both business processes outsourcing as well as producing agricultural commodities as it is mentioned that it can produce both of these more efficiently than the United States.
However, although it has absolute advantage in both, it is still less efficient in producing agricultural commodities when compared to business process outsourcing. In other words, if it attempts to produce agricultural commodities in-house, the benefit lost from the second best alternative: business process outsourcing is high. The opportunity cost is higher when it produces agricultural commodities than it is when it does business process outsourcing. Hence, due to the law of comparative advantage, it chooses to specialize in business process outsourcing and imports agricultural commodities.
A company will pay interest based on its credit rating and the length of time over repayment is scheduled to occur (1-year, 5- years, or 10 years).
<h3>How is interest decided?</h3>
- It is based on various risks such as credit risk and maturity risk.
- Credit risk of a company is shown in its credit rating.
- The maturity risk increases as the length of time to repayment increases.
The interest paid will therefore be dependent on the credit rating of the company and the term of the loan that it took out as these show different types of risk.
In conclusion, option A is correct.
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Answer:
purchases = 160000
Explanation:
given data
beginning inventory = $140,000
amount of inventory on hand = $80,000
net sales = $400,000
gross profit rate = 40%
solution
we first Computation of cost of goods sold hat is
Gross profit rate = 
× 100
= 
= = 
= 100 Gross profit = 16000000
so
Gross profit = 160000
and
Cost of goods sold is = sales - gross profit
so
Cost of goods sold = 400000 - 160000
Cost of goods sold = 240000
and
Cost of goods sold = opening inventory + purchases - closing inventory
so put here value
240000 = 140000 + purchases - 60000
so purchases = 160000
The Federal Reserve is responsible for monitoring the money supply and the general stability and safety of u. s. banking system.
The US Central Banking System - The Federal Reserve System or Federal Reserve Board (Fed) is the most powerful economic institution in the United States and possibly the world. Its core responsibilities include setting interest rates, managing the money supply, and regulating financial markets.
The Federal Reserve promotes the safety and soundness of individual financial institutions and oversees their impact on the financial system as a whole.
The FOMC controls the country's money supply. The voting members of the FOMC are the Board of Governors, the president of the Federal Reserve Bank of New York, and the presidents of the other four Reserve Banks, who function on a rotating basis. All Reserve Bank Governors participate in FOMC policy discussions.
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