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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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If supply and demand both increase then equilibrium price will also increase. True or False
lukranit [14]

Answer:

This statement is false.

Explanation:

The change in the equilibrium price due to a change in in an increase in both demand and supply cannot be predicted without knowing the magnitude of the increase.

If the proportionate increase in the demand is greater than the increase in supply, the equilibrium price will increase.  

If the proportionate increase in the supply is greater than the increase in demand, the equilibrium price will decrease.  

If the increase in demand is proportionately equal to the increase in supply, the equilibrium price will remain the same.

6 0
3 years ago
You are considering investing in a start up project at a cost of $100,000. You expect the project to return $500,000 to you in s
NemiM [27]

Answer:

b.The IRR is equal to 25.85%

Explanation:

Firstly we are given that i consider investing $100000 which will in this problem be our Cinitial which is the initial investment for the project.

Then now given the risk of this project, my cost of capital is 20% so then we will compare this to the IRR and see if i can accept the project or not if the cost of capital is greater than the IRR than its not good to invest on the project but if the cost of capital is less than the IRR then the this will be a good investment as the cost of capital also checks the opportunity cost.

The future payment cash flows which is $500000 so we will use the following formula:

NPV = (cash flow)/(1+IRR)^n     - initial investment

so we find the present value of the cash flow of the investment and subract the initial investment which will give us a zero cause the present value of the cash flow is equal to the initial investment therefore( n is the period of cash flows):

0= $500000/(1+IRR)^7    - $100000 transpose the initial investment and solve for IRR.

$100000(1+IRR)^7= $500000 then divide both sides by $100000

(1+IRR)^7 =  5          then find the 7nth root of both sides to eliminate the exponent of 7

1+ IRR = \sqrt[7]{5}

1+IRR = 1.258498951 then subtract 1 both sides to solve for IRR

IRR = 0.258498... then multiply by 100 as IRR is a percentage

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8 0
3 years ago
Use the following selected information from Wheeler, LLC to determine the 2017 and 2016 trend percentages for net sales using 20
babunello [35]

Answer:

119.4% for 2017 and 100.0% for 2016.

Explanation:

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Net sales                                 $276,200        $231,400

Cost of goods sold                  $151,900        $129,590

Operating expenses                $55,240         $53,240

Net earnings                             $27,820          $19,820

since we are using 2016 as a base year, the $231,400 in net sales represent 100%, so the trend percentage for 2017 = net sales 2017 / net sales 2016 $276,200 / $231,400 = 1.1936 = 119.4% or a 19.4% increase.

The base year's amount will always be 100% or 1, and the trend percentages will change relative to that year.

7 0
3 years ago
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What statement about minimum payments is incorrect
Oksana_A [137]

"If you send in the minimum payment, you will be charged a late fee."

This is an INCORRECT statement, because  you will not be charged a late fee just for making the minimum payment. Minimum payments are not a good idea because you will be charged interest on the remaining amount and will have a harder time paying off the balance, but you will not be charged a late fee.

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lara31 [8.8K]
Physical factors shape the environment and determine climate rainfall and vegetation. Chemical factors determine acidity levels of soils, radioactivity and natural chemicals found below the soil. They are also important for the nutrition of other animals. Biological factors include all of the plants and animals and they help change the environment daily.
6 0
3 years ago
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