Answer:
The answer is letter A.
Explanation:
The presence of ___imperfect information__________________ in transactions involving goods can easily cause a _____thin market_________________ if the result is only a relatively small number of buyer and sellers communicating enough information so that they can agree on a price.
Answer:
A.3.63 times
B.95.5 days
C.21.0 times
D.13.5 days
Explanation:
a.
Inventory turnover = Cost of goods sold / Average inventories
Hence:
= $602,250 / $166,000
= 3.63 times
b.
Number of days’ sales in inventory = Inventory at year-end / Average day’s cost of good sold
= $157,575 / $1,650
= 95.5 days
Average day’s cost of goods sold
= Annual cost of good sold / 365
= $602,250 / 365 = $1,650
c.Accounts receivable turnover
= Sales / Average accounts receivable
= $821,250 / $39,100
= 21.0 times
d.
Number of days’ sales in accounts receivable
= Accounts receivable at year-end / Average day’s sales
= $30,400 / $2,250 = 13.5 days
Average day’s sales = Annual sales / 365
= $821,250 / 365
= $2,250
This is an example of a moral hazard. This is a condition
in which one party gets convoluted in a dangerous occurrence knowing that it is
sheltered in contradiction of the risk and the other party will suffer the
cost. It arises when mutually the parties have imperfect information about each
other.
Well 162,80 divided by 8,000 is 2.035 so thats going to be your answer hope this helps
