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mote1985 [20]
3 years ago
5

How long a company holds inventory before selling it can be measured by dividing cost of goods sold by the average inventory bal

ance to determine the:a. Price earnings ratio.b. Accounts receivable turnover.c. Current ratio.d. Inventory turnover.e. Days' sales uncollected.
Business
1 answer:
lisabon 2012 [21]3 years ago
5 0

Answer:

d. Inventory turnover

Explanation:

The formula to compute the inventory turnover is shown below:

= Cost of goods sold ÷ average inventory

where,  

Average inventory = (Opening balance of inventory + ending balance of inventory) ÷ 2

The inventory turnover should always be expressed in times

Hence, the most appropriate option is d.

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<span>c. balanced.</span><span>

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8 0
3 years ago
Suppose the Federal Reserve sets the reserve requirement at 20%, banks hold no excess reserves, and no additional currency is he
Drupady [299]

The money multiplier is 5. And the total money supply increase by $2,000 million if the Federal Reserve increases reserves by $400 million.

Given,

The Federal Reserve sets the reserve requirement at 20%.

Banks hold no excess reserves, and no additional currency is held.

  • The money multiplier displays the amplitude of the change in the money supply as a result of the addition of new reserves to the banking system.
  • Banks use the money they are not obligated to retain in reserve to make loans, and the borrowed money shows up on other customers' deposit accounts.
  • In macroeconomics, the money multiplier is significant because it controls the money supply, which influences interest rates.
  • Because it affects monetary policy and the stability of the banking industry, it is also significant in the banking industry.

The money multiplier formula can be used to calculate the total amount of new deposits or money created.

Money multiplier = 1/reserve ratio

                            = 1/0.20

                            = 5

change in Total money supply = Money multiplier × change in reserves

                                 = 5 × $400 million

                                 = $2,000 million

Hence, The money multiplier is 5. And the total money supply increase by $2,000 million if the Federal Reserve increases reserves by $400 million.

Learn more about Federal Reserve Bank:

brainly.com/question/999538

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4 0
2 years ago
What does the process of designing marketing channels start​ with?
umka21 [38]

The journey of a manufactured goods from its raw materials to a consumer’s hands is its marketing channel. The initial step in scheming a marketing channel is recognizing what the target consumer necessitates. Getting this step right is critical, or you’ll wind up with a mound of unsold goods. Market research is a complicated industry, but with the correct implements and direction, you can make a high-demand good that essentially sells itself.

3 0
3 years ago
Allison is debating about hiring Jim for a new position at her firm producing computer software. She estimates that Jim will add
schepotkina [342]

Answer:

The maximum wage Allsion would be willing to hire Jim is $500 per a day.

Explanation:

Since Jim's appearance at the firm is estimated to create an additional revenue of $500 per day, for the firm to be profitable from hiring Jim to work for them, the additional cost incurred from hiring him - that is his salary, should not exceed $500 per a day.

Thus, the maximum wage the computer software company is willing to pay Jim is $500 per a day.

6 0
3 years ago
A manufacturer of tiling grout has supplied the following data:
NNADVOKAT [17]

Answer:

c. 31.4%

Explanation:

As we know that

Contribution margin ratio is

= Contribution margin ÷ Sales revenue × 100

where,

Contribution margin is

= Sales revenue - Variable manufacturing expense - Variable selling and administrative expense

= $1,920,000 - $957,000 - $360,000

= $603,000

And the sales revenue is $1,920,000

So, the ratio is

= $603,000 ÷ $1,920,000 × 100

= 31.40%

6 0
3 years ago
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