TRUE. A company might conduct full-scale practice drills, including closing a building and working from a remote location, in order to test its contingency plans
EAR = (1 + periodic interest rate)^N - 1
<u>9.25 % Quarterly %</u>
EAR = 
= 0.09575 or 9.58%
<u>16.75 Monthly %
</u>
EAR = 
= 0.1809766 or 18.10%
<u>15.25 Daily %
</u>
EAR = 
= 0.1647053 or 16.47%
<u>11.25 Semiannually %</u>
EAR = 
= 0.115664 or 11.57%
Answer:
Cash flow provided from operating activities 12,700
Explanation:
Net Income: 10,500
Depreciation expense 5,500 a
Adjusted income 16,000
Change in working capital
↓Account Receivable 3,500 b
↑Inventory (7,500) c
↑Salaries payable 700 d
Total Change in working capital (3,300)
Cash flow provided from operating activities 12,700
<u>Notes:</u>
a The depreciation is a non-monetary concept it has no impact in cash. It is removed.
b The decrease the AR means cash was collected, therefore the cash increase
c The increase in inventory represents cash being used to purchase that inventory. Cash decreased
d the salaries payable represent the delay of cash disbursement, it increases cash.
Answer:
where:
The inventory turnover represent how many times the company sales their inventory during the year or period of analysis.
A high inventory turnover during Christmas shopping seasons mean sales are higher. The inventory in the store is sold more times during this time.
It depends on the situation
