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Brums [2.3K]
3 years ago
10

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.
a) What is the inventory turnover?

b) How many weeks of supply does the firm hold?
Business
1 answer:
Eduardwww [97]3 years ago
8 0

Answer:

Explanation:

a.) Inventory turnover = Cost of goods sold / Inventory

Cost of goods sold= $25mill.

Inventory = $2mill.

Therefore, Inventory turnover= 25/2 = 50

b.) Weeks of supply held =( Inventory / Cost of goods sold) *52

**It's multiplied by 52 since there are 52 weeks in a year.

Weeks of supply held = (2 / 25) *52 = 4.16 weeks

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The transactions of Spade Company appear below.
s2008m [1.1K]

Answer:

Entries are given

Explanation:

We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.

                                            DEBIT           CREDIT

A. Kacy Spade, owner, invested cash in the company

Common stock                   14250

Cash                                                           14250

B. The company purchased office supplies

Office supplies                      413

Cash                                                              413

C.The company purchased office equipment on credit

Office equipment                 7880

Payables                                                      7880

D.The company received $1,681 in cash

Cash                                       1681

Fees earned                                                 1681

E. The company paid $7,880 cash to settle the payable

Payables                                7880

Cash                                                              7880

F. The company billed a customer $3,021 as fees

Receivable                              3021

fees earned                                                   3021

G. The company paid $520 cash for the monthly rent.

Rental expense                        520

Cash                                                               520

H. The company collected $1,269 cash as partial payment

Cash                                         1269

Receivables                                                    1269

I. The company paid a $1,000 cash dividend to the owner

Retained earnings                  1000

Cash                                                                 1000

5 0
3 years ago
Since the costs of producing an intermediate product do not change regardless of whether the intermediate product is sold or pro
Snowcat [4.5K]

Answer: a) true

Explanation:

The costs incurred to produce the intermediate products have already been incurred and as such are referred to as sunk costs.

They will not change regardless of whether the good is sold before further processing or if it is sold after. They therefore do not matter in the decision to either process or sell and so are not considered.

8 0
3 years ago
Statutory employees :a. Include common law employees.b. Report their expenses as miscellaneous itemized deductions.c. Claim thei
Sindrei [870]

Answer:

c Claim their expenses as deductions for AGI.

Explanation:

Their costs are specified in Schedule C, not Form 2106 (Option). Although subject to Social Security tax, they are not subject to income tax withholding (option). Legitimate employees are not common law employees (selected). Costs for AGI will be reduced  

3 0
3 years ago
Jackie has been reading about international trade and that one nation has the ability to produce a specific product more efficie
ludmilkaskok [199]

Answer: (A) Cooperative advantage

Explanation:

  A cooperative advantage is the term which is used by an organization for providing the various types of benefits and advantages to all the employees in the company and it also helps in achieving the specific goal in an organization.

 The main objective of the cooperative advantage is to providing the various types of economical benefit in an organization.  

According to the given question, Allie is basically using the cooperative advantage over Jackie for the process of making the power point presentation about the international trade and so that by using the presentation method they can easily convey their opinions and message to the audience.  

 Therefore, Option (A) is correct answer.

6 0
3 years ago
The method of informing that focuses on how something is similar to and different from other things is called:
yaroslaw [1]

Answer:

comparison and contrast

Explanation: the definitation and meaning is expained in speech chapter 12

4 0
3 years ago
Read 2 more answers
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