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MA_775_DIABLO [31]
3 years ago
12

Franklin Aerospace has a quick ratio of 2.00x, $36,225 in cash, $20,125 in accounts receivable, some inventory, total current as

sets of $80,500, and total current liabilities of $28,175. The company reported annual sales of $200,000 in the most recent annual report. Over the past year, how often did Franklin Aerospace sell and replace its inventory? 2.86x 8.28x 8.01x 9.11x
Business
1 answer:
KIM [24]3 years ago
3 0

Answer:

8.28 times

Explanation:

Quick Ratio = \frac{CA\ -\ Inventory\ - Prepaid\ Expenses}{Current\ Liabilities}

wherein, CA = Current Assets

Inventory =  Total Current assets - cash - accounts receivables

Inventory = 80,500 - 36225 - 20125 = $24,150

Inventory Turnover is used as a measure to know how frequently a firm uses and sells inventory in a given period of time.

A high inventory turnover ratio depicts how rapidly inventory is being sold. So higher the ratio, the better it is for a firm.

Inventory Turnover Ratio = \frac{Net\ Sales}{Average\ Stock} = \frac{200,000}{24,150}  = 8.28 times approx.

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Which of the following is true? a. Mutual gains could be realized if the United States specialized in producing food and South K
inna [77]

Answer:

A) Mutual gains could be realized if the United States specialized in producing food and South Korea in producing clothing.

Explanation:

The United States has more available land for farming, while South Korea has many factories.

5 0
3 years ago
The following information is available for Marin Inc. for three recent fiscal years. 2022 2021 2020 Inventory $565,000 $572,000
Nataly_w [17]

Answer:

Inventory turnover for 2022 =  1.25

Inventory turnover for 2021 =  1.3

Days Sales in Inventory for 2022= 145.10

Days Sales in Inventory for 2021= 180.044

Gross Profit Rate for 2022= 473750/1,895,000*100= 25%

Gross Profit Rate for 2021= 0.35 * 100= 35%

Explanation:

                      2022        2021     2020  

Inventory $565,000 $572,000 $320,000  

Net sales 1,895,000 1,784,000 1,360,000  

Cost of goods sold 1,421,250 1,159,600 930,000

Inventory turnover= Cost Of Goods Sold/ Average Inventory

Inventory turnover for 2022 =  1,421,250/ $565,000 + $572,000

Inventory turnover for 2022 =  1,421,250/ 1137,000

Inventory turnover for 2022 =  1.25

Inventory turnover for 2021 =  1,159,600/$572,000 + $320,000  

Inventory turnover for 2021 =  1,159,600/892,000

Inventory turnover for 2021 =  1.3

Days Sales in Inventory for 2022 = Ending Inventory/ Cost Of Goods Sold * 365

Days Sales in Inventory for 2022 =($565,000/1,421,250)*365

Days Sales in Inventory for 2022 =(0.3975)*365

Days Sales in Inventory for 2022= 145.10

Days Sales in Inventory for 2021 = Ending Inventory/ Cost Of Goods Sold * 365

Days Sales in Inventory for 2021 =$572,000 / 1,159,600 * 365

Days Sales in Inventory for 2021= 0.4933*365

Days Sales in Inventory for 2021= 180.044

Gross Profit Rate= Gross Profit/ Sales * 100

Gross Profit Rate= Sales - Cost Of Goods Sold / Sales * 100

Gross Profit Rate for 2022= 1,895,000-1,421,250/1,895,000* 100

Gross Profit Rate for 2022= 473750/1,895,000*100= 25%

Gross Profit Rate for 2021= 1,784,000 -1,159,600/ 1,784,000 * 100

Gross Profit Rate for 2021= 624,400/1,784,000 * 100

Gross Profit Rate for 2021= 0.35 * 100= 35%

6 0
3 years ago
ash Flows from Investing Activities During the year, Murray Company sold equipment with a book value of $125,000 for $175,000 (o
NeTakaya

Answer:

Investing cash flow from current year = -$250,750. This means that the company invested $250,750 in purchasing new equipment and land during the year.

Explanation:

cash flow from investing activities = money received from the sale of assets - money spent purchasing new assets

  • money received from the sale of assets = $175,000
  • money spent purchasing new equipment = plant & equipment year 20x1 - plant & equipment year 20x2 + cost of old equipment = $1,000,000 - $1,025,000 + $225,000 = $200,000
  • money spent purchasing new land = land 20x2 - land 20x1 = $725,750 - $500,000 = $225,750  

Cash flow from investing activities = $175,000 - $200,000 - $225,750 = -$250,750

5 0
3 years ago
Linda Clark received $223,000 from her mother’s estate. She placed the funds into the hands of a broker, who purchased the follo
Nookie1986 [14]

Answer:

Explanation:

check attached files below for explanation..

8 0
3 years ago
Read 2 more answers
Select the correct answer.
Sergio039 [100]
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