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lions [1.4K]
3 years ago
8

Asset management ratios Asset management ratios are used to measure how effectively a firm manages its assets, by relating the a

mount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio.
Consider the following case:_______.
Graham Pharmaceuticals has a quick ratio of 2.00x, $31, 500 in cash, $17, 500 in accounts receivable, some assets of inventory, total $70,000, and total abilities of $24, 500. The company reported annual sales of $100,000 in the most recent annual report, over the past year, how often did Graham Pharmaceuticals sell and replace its inventory?
a. 8.01 x
b. 5.24 x
c. 2.85 x
d. 4.75x
Business
1 answer:
emmasim [6.3K]3 years ago
4 0

Answer:

d. 4.75x

Explanation:

The computation is shown below:

Inventories = Total current assets - (Cash + Account receivable)

= $70,000 - ($31,500 + $17,500)

= $21,000

Now

Inventory turnover ratio = Sales ÷ Inventory

= $100.000 ÷ $21,000

= 4.76

hence, the correct option is d. 4.75x

The same is to be considered

We simply applied the above formula

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Firms that charge relatively low prices and offer substantial differentiation are following a best-cost strategy. A best cost st
satela [25.4K]

Answer: The answer is given below

Explanation:

A best-cost strategy is a strategy that is used by companies as they focus on low cost in order to give their customers better value for the money spent on the purchase of goods or services from them. The goal of this strategy is to keep the prices and costs lower when compared with the other competitors that offer similar products.

This strategy can be very successful in retail stores. Retail stores offer similar products to their competitors and using this strategy could help in making the store get more customers and hence push up its income.

For this strategy to work in such industry, firstly, the company will need to study its market very well, get to know its competitors, have a good working relationship with the manufacturers of different products, and have a friendly and amazing staffs who know what is and expected of them. With all these in place, success will be achievable.

An example of a firm in Jacksonville that is following a best cost strategy is

McDonald. The company over the years, has been successful and laid s foundation of offering fast-food meals that are of low prices and affordable.

4 0
3 years ago
1. Las cuentas con saldo deudor se producen cuando:
poizon [28]

Answer:

日本語のキーボード

Explanation:

4 0
3 years ago
Wanda Sotheby purchased 120 shares of Home Depot stock at $148 a share. One year later, she sold the stock for $140 a share. She
Archy [21]

Answer:

Return on investment =  -0.71%

Explanation:

<em>The return on investment is the sum of the dividends earned and capital gains made during the holding period of the investment.  </em>

<em>Dividend is the proportion of the profit made by a company which is paid to shareholders.  </em>

<em>Capital gains is another type of the return made on an equity investment as a result of increase in the value of the shares. It is difference between the cost of the share and the value at the time of disposal</em>.  

Therefore, we can can compute the return on the investment as follows:  

Total  Return on investment =  

(Capital gain/ loss + dividend )/purchase price × 100  

Capital loss = (184 -140) × 120 = - 480

Dividend = 427

Commission = 34 + 39 =-73

Net loss on investment = - 480 - 73 + 427= -126

Return on investment = -126 /(148× 120) = -0.71%

Return on investment =  -0.71%

5 0
3 years ago
Incurring an expense for advertising on account would be recorded by:
Roman55 [17]

Complete Question:

Incurring an expense for advertising on account would be recorded by:

Group of answer choices

A) Debiting a liability account.

B) Crediting an asset account.

C) Debiting an expense account.

D) Debiting an asset account.

Answer:

C) Debiting an expense account.

Explanation:

Incurring an expense for advertising on account would be recorded by debiting an expense account.

This ultimately implies that, when a business firm incurs an expense such as on advertising its goods or services, the appropriate account on the balance sheet to record this will be to debit the advertising expense account and then credit the account payable.

5 0
3 years ago
Meteor Tie Company produces ties from fabric according to Q = 10 + 4 F – (1/3) F 3. If fabric is free and ties sell for $20, wha
Leya [2.2K]

Answer:

The optimal usage of fabric = 2

Explanation:

Given the quantity, Q = 10 + 4F - (1/3) F^3

Selling price = $20

Profit = TR - TC

There is no variable cost and let the fixed cost is constant G.

Profit =  PQ - G  

Profit = 20(10 + 4F − (1/3)F^3)) - G = 0

Now take the first order derivative:

d(profit) / dF = 0

20(4 - F^2) = 0

F = 2

Therefore the optimal usage of fabric = 2

8 0
3 years ago
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