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hoa [83]
3 years ago
11

Last year, the House of Orange had sales of $826,650, net operating income of $81,000, and operating assets of $84,000 at the be

ginning of the year and $90,000 at the end of the year.
What was the company's turnover rounded to the nearest tenth?

A) 9.8

B) 10.2

C) 9.5

D) 9.2
Business
1 answer:
seropon [69]3 years ago
7 0

Answer:

The company's turnover rounded to the nearest tenth: C) 9.5

Explanation:

Asset turnover helps investors understand how effectively companies are using their assets to generate sales. Asset turnover is calculated by using following formula:

Asset Turnover =  Total Sales or Revenue/ Average Total Assets  

where:

Average Total Assets = (Beginning Assets + Ending Assets )/2 = (Assets at the beginning of year  +Assets at end of year )/2

In the House of Orange:

Average Total Assets = ($84,000 + $90,000)/2 = $87,000

Asset Turnover = $826,650/$87,000 = 9.5

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A ________ produces goods in advance of customer demand using a forecast of sales and moves them through the supply chain to poi
adoni [48]

Answer:

C.) Push System.

Explanation:

3 0
3 years ago
Kate's Diner offers one breakfast item, a breakfast special. The market price for this meal is $5. At her profit-maximizing leve
bazaltina [42]

Answer:

keep producing in the short run but exit the industry or go out of business in the long run

Explanation:

A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.  

In the long run, firms earn zero economic profit.  If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.  

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.  

A firm should shut down in the short run if price is less than average variable cost. But since the diner's price is greater than average variable cost, it should continue production.

A firm should exit the industry in the long run if price is less than average total cost. the diner's price is less than average total cost, so it should shut down in the long run

6 0
3 years ago
Meng Co. maintains a $300 petty cash fund. On January 31, the fund is replenished. The accumulated receipts on that date represe
Alona [7]

Answer: The correct answer is e) $32.

Explanation:

Petty cash fund. $300

Office supplies. (80)

Merchandise inventory. (160)

Miscellaneous expenses. (20)

Cash shortage. (8)

Balance in petty cash. $32

In terms of accounting entries,

Debit Office supplies. $80

Debit Merchandise inventory. $160

Debit Miscellaneous expenses. $20

Debit Cash shortage. $8

Credit Petty cash refund. $268

In the above entries, $268 would be refunded to petty cash fund to reinstate it to $300.

3 0
3 years ago
Quartz Instruments had Retained Earnings of $150,000 at December 31, 2018. Net income for 2019 was $95,000, and dividends for 20
Svet_ta [14]

Answer:

The answer is B. $210,000

Explanation:

Retained Earnings is the part of profit that is not spent. It is put back into the business after the dividend must have been paid from profit for the year.

Ending retained earnings = beginning Retained Earnings plus net income minus dividend

Beginning Retained Earnings is $150,000

Net income is $95,000

Dividend is $35,000

Therefore amount of Retained Earnings at December 31, 2019 is

$150,000+$95,000-$35,000

=$210,000

8 0
3 years ago
Suppose Kendall's had cost of goods sold during the year of $ 260 comma 000. Beginning merchandise inventory was $ 20 comma 000​
kiruha [24]

Answer:

Inventory turnover = 9.45

Explanation:

Inventory turnover is defined as the ratio between Cost of good sold and average inventory.

Average inventory is defined as follows, where BI = Beginning merchandise inventory and EI = Ending merchandise inventory:

Average Inventory = \frac{BI + EI}{2}

Average Inventory=\frac{20000+35000}{2}=27500

then:

Turnover = \frac{260000}{27500} \\Turnover = 9.45

6 0
3 years ago
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