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Andrei [34K]
3 years ago
14

The CFO of Edward's Food Distributors is continually receiving capital funding requests from its division managers. These reques

ts are seeking funding for positive net present value projects. The CFO continues to deny all funding requests due to the financial situation of the company. Apparently, the company is:__________.
a. Operating at the accounting break-even point.
b. Operating at the financial break-even point.
c. Facing hard rationing.
d. Operating with zero leverage.
e. Operating at maximum capacity.
Business
1 answer:
NeX [460]3 years ago
4 0

Answer:

c. Facing hard rationing.

Explanation:

In this scenario, the CFO of Edward's Food Distributors is continually receiving capital funding requests from its division managers. These requests are seeking funding for positive net present value projects. The CFO continues to deny all funding requests due to the financial situation of the company. Apparently, the company is facing hard rationing.

Hard rationing can be defined as a capital budget that an organization is expected to adhere strictly to, as a result of limited or few resources availability and as such there is no room for errors or modifications in the short run.

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Answer:

The formula for inventory turnover ratio is

Cost of goods sold/ Average inventory. So we can put numbers in the formula and find the cost of good sold for the company.

Inventory turnover ratio= cost of goods sold/Average Inventory

3= cost of goods sold/ 156,000

156,000*3= cost of goods sold

Cost of goods sold = 468,000

Now to find out what the average inventory needs to be for the inventory turnover ratio to be 6 and cost of goods sold to be 468,000 we will put these 2 numbers in the formula in order to find the average inventory.

6= 468,000/Average Inventory

Average Inventory = 468,000/6= 78,000

She would need average inventory levels of $78,000 to generate the same level of sales and have an inventory turnover ratio of 6.

Explanation:

7 0
2 years ago
According to the CME Group, the market price of the E-mini futures is $2,939.25. Each futures contract delivers 50 times the ind
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Answer:

E-Mini futures = $2,939.25

Contract Size = 50

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Target Beta 2, Planning to increase the exposure

Calculation of Number of contracts needed = [Portfolio Size x (Target Beta - Actual beta)] / Contracts Size x Future Price

= (10,000,000 x (2 - 1.5) ] / 50 x 2939.25

= (10,000,000 x 0.5) / 146962.5

= 5,000,000 / 146962.5

= 34.02228459641065

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So, you need to go Long 34 contracts to Increase the exposure.

3 0
2 years ago
As a gardener, Joey earns $19.20 per hour. He earns double time for work on Saturdays. Last week, he worked 25 regular hours plu
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3 years ago
You are preparing for a 3-month global assignment in Turkey working on an international quality improvement team for your compan
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Answer:

The correct answer is letter "C": Geopolitical views of your own (native) country.

Explanation:

According to the excerpt, the purpose of the assignment is improving the quality of a product being manufactured. In that case, it is imperative to first identify what is the geographical and political current situation of the country we are from since this will allow identifying opportunities that can be complemented Turkey's geopolitical opportunities that must be pointed out by their representatives.

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Answer:

c. $40,000

Explanation:

Reduction in Account Receivables          $500,000

($2,500,000 * 20%)

<u>* Interest rate                                               11%          </u>

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