Answer:
quick ratio = 0.61
Explanation:
given data
cash = $8,800
accounts receivable = $15,800
fixed assets = $87,600
accounts payable = $40,300
inventory = $46,900
solution
we get here quick ratio that is express as
quick ratio = (Cash + Accounts receivable) ÷ (Accounts Payable) .................1
put here value and we get
quick ratio = 
quick ratio = 0.61
so correct option is c. 61
Answer:
Net present Value (NPV)
Explanation:
The net present value (NPV) is one of the tools used in business for appraising the desirability or otherwise of projects or investments. It compares the present value (PV) of cash inflows with the present value of cash outflows over a period of time. It is the difference between the present value of the future cash inflows from an investment and the amount of initial capital outlay that gives either profit or loss.
Answer:
EOQ= 300 units
Annual ordering cost= $3750
Annual holding cost =$3750
Re-order point =100 units
Explanation:
The Economic Order Quantity (EOQ) is the order size that minimizes the balance of ordering cost and holding cost. At the EOQ, the carrying cost is equal to the holding cost.
It is computed using he formulae below
EOQ = √ (2× Co× D)/Ch
EOQ = √ (2× 75× 15,000)/25
EOQ = 300 units
Annual holding cost
= EOQ/2 × holding cost per unit
= 300/2 × $25
=$3750
Annual ordering cost
= Annul demand/EOQ × ordering cost per order
=( 15,000/300)× $75
= $3750
Re-order Point
Maximum consumption × maximum lead time
=( 15,000/300)× 2 = 100 units
Answer:
Correct option is C
<u>Overall operating income will decrease by $25,000.</u>
Explanation:
Sales ratio = Sales of product 1 : Sales of product 2 = 200,000:300,000 = 2:3
Sum of sales ratio = 2+3 = 5
Common fixed cost:
Product 1 = 2/5×46,000 = $18,400
Product 2 = 3/5×46,000 = $27,600
Total net operating income = Net operating income of product 1 + Net operating income of product 2 = 46,600+(2,600) = 46,600-2,600 = $44,000
Now, comparing with the total net operating income of both the product ($44,000) with only product 1 ($19,000); overall operating income decreases by $25,000 (44,000-19,000)
Answer:
In forecasting accounts payable, one of the relevant questions is:
What is the cash conversion cycle?
Explanation:
The variables used in computing the cash conversion cycle include accounts receivable days, inventory turnover days, and accounts payable days. Specifically, cash conversion cycle (CCC) is the period in days that it takes the firm to convert cash into inventory, then into sales, and finally back into cash. To gain a good understanding of accounts payable, one should always consider the major inclusive metric.
