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3 years ago

Inventory Ratio Calculations

Business

1 answer:

tatuchka [14]3 years ago

7 0

Answer:

Inventory Turnover Ratio for 2008= 3.223 Times

Inventory Turnover Ratio for 2009= 3.91 times

Explanation:

Inventory Turnover Ratio= Cost of Goods Sold / Average Inventories

Inventory Turnover Ratio for 2008= $632,000/ $201,000 + 191,100/2

Inventory Turnover Ratio for 2008= $632,000/196,050

Inventory Turnover Ratio for 2008= 3.223 times

Inventory Turnover Ratio for 2009= $ 731,000/191,100 + 182,600/2

Inventory Turnover Ratio for 2009= $ 731,000/ 186,850

Inventory Turnover Ratio for 2009= 3.91 times

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3 years ago

Based on a predicted level of production and sales of 15,000 units, a company anticipates reporting operating income of $22,000

jarptica [38.1K]

Answer:

e.$8,000 of fixed costs and $108,000 of variable costs.

Explanation:

Fixed costs don't change with a change in production volume, therefore, fixed costs remain $8,000.

The cost per unit to produce 15,000 units is:

$C =\frac{\$90,000}{15,000}\\C=\$6/unit$

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4 years ago

The interest paid on a municipal bond, otherwise known as a muni, is generally exempt from federal income taxes. therefore, the

Ratling [72]

That statement is true
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4 years ago

Diane is a CFO at we do what we want, Inc. She was just instructed by her boss, the CEO, to accelerate the recording of revenue

Novosadov [1.4K]

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3 years ago

Eric deposits 1000 into a bank account. The bank credits interest at a nominal annual rate of i convertible semiannually for the

FrozenT [24]

Answer:

1276.5

Explanation:

Today, Eric deposited an amount(PO) that is = 1000

The annual nominal Interest rate for the first 7 years = i

This is convertible semiannually.

As such,

The semi-annual interest rate for first 7 years = $\frac{i}{2}$

The number of semi-annual periods in 7 years (k) = 2*7 = 14

The magnitude of the deposit at end of year 7( P7),

= P7 == P0 * (1 + i/2)14 ------ equation 1

On the other hand,

The nominal interest rate after 7 years = 2i which is convertible quarterly

The effective quarterly interest rate = $\frac{2i}{4}$ = $\frac{i}{2}$

The number of quarters between the end of year 7 and year 10.5 = 4* (10.5 - 7) = 14

The amount of deposit at the end of year 10.5 year = P10.5

$P_{10.5}$ = $P_{7}$ * (1 + $\frac{i}{2}$ $_{14}$ ---equation 2

We are given the following:

$P_{10.5}$ =1980

We shall thus substitute this value into the equation as

1980 = $P_{7}$ *( 1 + i/2)14

Further, we have worked out that

P7 == P0 * (1- i/2)14 *(1

We shall therefore substitute equation 1 into equation 2 as follows

1980 = P0 * (1+ i/2)14 *( 1 + i/2)14

1980 = 1000* (1+ i/2)14 *( 1 + i/2)14

This can also be rewritten as

1000* (1+ i/2)14 *( 1 + i/2)14 =1980

(1+ i/2)14 *( 1 + i/2)14 =1980/1000

(1+ i/2)28 =1.98

(1+ i/2) = 1.981/28

(1+ i/2) = 1.0247

i/2 = 1.0247 -1

i/2 = 0.0247

1 = 0.0247 *2 =0.0494

At the end of year 5, the amount has accumulated to an amount = X

X = Po * ( 1 + i/2 )10

= 1000 * ( 1 + 0.0494/2)10

= 1000 * ( 1 + 0.0247)10

= 1000 + ( 1.0247)10

= 1000* 1.276467

= 1276.5

6 0

3 years ago