Answer:
The average number of times inventory is sold during the period.
Explanation:
Inventory turnover by definition is the relationship between inventories and the cost of goods sold by a firm. It measures on average, how many times the inventory was restocked and sold in the operating period.
A higher number usually suggests a healthier operation cycle for a business.
It is measured by,
Inventory turnover = Cost of goods sold / Average inventory
Option 1 and Option 3 are related to the performance of accounts receivables. Option 3 is the closest to above mentioned definition. Option 4 is only measuring the inventory clearance time.
Hope that helps.
This graph is indicating a fixed exchange rate that prevents the foreign exchange rate from moving outside of the upper and lower limits.
Answer: Option D.
<u>Explanation:</u>
A fixed exchange rate, now and again called a pegged exchange rate, is a kind of swapping scale system in which a cash's worth is fixed or pegged by a money related authority against the estimation of another money, a container of different monetary forms, or another proportion of significant worth, for example, gold.
In this case, the exchange rate is fixed because the limits are fixed in this case.
Answer: 1. A.Both firms will choose the low price.
2. B. Both firms would choose the high price.
Explanation:
1. If the firms cannot cooperate with each other and must choose simultaneously, both firms will choose the low price.
This is because at the low price both of them are at the highest profit they can make when they are not cooperating. For instance, if Firm B chooses Low Price and Firm A chooses High Price, Firm A will make $3 million while Firm be will make $8 million.
If Firm B decides to have a high price then firm A will take the low price and make $8 million in profit while Firm B makes $4 million. If they are not working together, they will both have to take the low price to make the most profit.
2. If the firms could cooperate with each other, both firms would choose the high price.
The is because they will be making more than competing and getting a lower profit. Should they cooperate they will each get $7 million in profit because they will pick the option they can both make the highest profit at. The is better than competing and making only $5 and $6 million respectively.
If you need any clarification do comment. Cheers.
The journal entry for the inventory purchased will be to record the sale and another one to record the cost of the sale.
<h3>What is a journal entry?</h3>
It should be noted that a journal entry is used to record the financial activities of a company.
In this case, the journal entry for the purchase of inventory on account using the perpetual inventory system is to record the sale and another one to record the cost of the good.
Learn more about inventory on:
brainly.com/question/24868116
Answer:
We have to discount these payments to find the present value
500,000
500,000/1.1
500,000/1.1^2
500,000/1.1^3
We keep on doing this until we reach 500,000/1.1^19
After that we add all the payments and get the value. A less time consuming way of doing it is using a financial calculator
Pv=?
N=19
FV=0
PMT=500,000
=4,182,460.05 we add 500,000 to this because the first payment was not discounted=4,682,460.05= Present Value.
Explanation:
