Answer:
1. 166,000
2. 188,000
Explanation:
The budgeted accounts receivable balance on September 30 and Budgeted cash receipts for october n be calculated as follows
July
Opening -
Credit sales 240,000
Collection
20% of July 48,000
Closing 192,000
August
Opening 192,000
Credit sales 220,000
Total 412,000
Collection
20% of August 44,000
70% of July 168,000
Total receipts 208,000
Closing 200,000
September
Opening 200,000
Credit sales 180,000
Total 380,000
Collection
20% of september 36,000
70% of august 154,000
10% of july 24,000
Total receipts 214,000
Closing 166,000
October
Opening 166,000
Credit sales 200,000
Total 366,000
Collection
20% of October 40,000
70% of september 126,000
10% of august 22,000
Total receipt 188,000
Closing 178,000
Answer:
d. 6.0 times
Explanation:
The calculation of inventory turnover ratio is shown below:-
Inventory turnover ratio = Cost of goods sold ÷ Average inventory
= Cost of goods sold = Sales revenue - Gross profit
= $1,800,000 - $600,000
= $1,200,000
Average inventory = (Beginning inventory + Ending inventory) ÷ 2
= ($160,000 + $240,000) ÷ 2
= $400,000 ÷ 2
= $200,000
Inventory turnover ratio = Inventory turnover ratio ÷ Average inventory
= $1,200,000 ÷ $200,000
= 6.0 times
Answer:
Value of the call option using Black-Scholes Model is $3.47
Explanation:
d1 = 0.175
• d2 = -0.025
• N(d1) = 0.56946
• N(d2) = 0.49003
N(d1) and N(d2) represent areas under a standard normal distribution function.
Stock price: $40.00 N(d1) = 0.56946
Strike price: $40.00 N(d2) = 0.49003
Option maturity: 0.25
Variance of stock returns: 0.16
Risk-free rate: 6.0%
The Black-Scholes model calculates the value of the call option as:
V = P[N(d1)] – Xe^rt[N(d2)]
= $40(0.56946) – $40e^rt(0.49003)
= $22.78 – $19.31
= $3.47
Answer:
The answer is C. wholesaler.
Explanation:
According to Edmentum, "Wholesalers purchase goods from various producers and stock them. Then, they sell stocks of goods to different retailers according to their requirement."
Answer:
Inventory levels will increase
Explanation:
CVP stands for cost volume profit analysis, under this analysis, there is basic assumption with respect to cost and revenue, that they are linear.
That means with the increase in output or sales, there will be increase in costs associated as cost is linear, and also the revenue is linear as with increase or decrease in number of units sold, the revenue will also increase or decrease.
But, it has an assumption that the inventory balance do not change, and inventory in hand do not show a linear equation as with the number of units produced or sold.
Thus, "Inventory levels do not increase under CVP analysis".
