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kolezko [41]
3 years ago
9

Analysis of a company's financial statements: Below are simplified versions of the balance sheet and income statement for Toys b

y Tom, Inc. Use this information to answer the following question.
Income Statement

Sales $100,000
COGS $41,700
Variable Sales and Admin $10,000
Fixed Sales and Admin $5,000
Net Income $43,300
Balance Sheet

Assets
Cash $10,000
Acconts Receivable $5,000
Inventory $10,000
Liabilities
Accounts Payable $5,000
Notes Payable $5,000
Shareholder's Equity
Common Stock $5,000
Retained Earnings $10,000
A 15% increase in inventory turns for Toys by Tom, Inc. would bring this ratio to _____, suggesting _____ in _____.

109 days; a deterioration; profitability

3.9 days; a deterioration; profitability

4.8 times; an improvement; efficiency

3.9 times; an improvement; efficiency
Business
1 answer:
il63 [147K]3 years ago
6 0

Answer:

The answer is:

A 15% increase in inventory turns for Toys by Tom, Inc. would bring this ratio to 4.8 times, suggesting improvement in efficiency.

Explanation:

We have the current Inventory turnover = COGS / Inventory = 41,700/10,000 = 4.17 times

=> An 15% increase in the Inventory turnover will bring the Inventory turnover ratio to: 4.17 x 1.15 = 4.8 times;

Increasing in inventory turnover may be the result of higher sales ( thus higher COGS) or low level of inventory holding - thus limiting the resources spending on idle inventory. So, higher level of inventory turnover in someways suggesting improvement in efficiency.

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Ilia_Sergeevich [38]

Answer:

I thinks it's gross national income

Explanation:

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3 0
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In a dutch-internet auction, the highest price wins.<br> a. true<br> b. false
Zolol [24]
A. True in a dutch interenet auction the highest price wins
7 0
3 years ago
True or False.
Lana71 [14]

Answer:

False

Explanation:

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6 0
3 years ago
A company has developed a new engine whose average lifetime is unknown. In order to estimate this average, 100 engines are rando
weqwewe [10]

Answer:

(B) Statistic

Explanation:

A statistic is defined as a metric derived from (or that describes) a sample. As such, given a certain population (in the case of the question, <em>the population is the total number of new engines developed by the company</em>), a sample can be selected from the population (<em>the sample in the question is the 100 engines that are randomly selected</em>).

Any characteristic that describes the population is known as a parameter, whereas a characteristic that defines the sample is a statistic. In the question given, the average lifetime of 11 years was derived from the sample of 100 engines as is thus a statistic.

5 0
3 years ago
What is not considered a characteristic of the money supply in the United States?
bonufazy [111]

The monetary supply in the United States is based on fiat money which means that it is not true that A)  America's fiat money is currently backed by gold deposits at the Federal  Reserve.

The American dollar is a fiat currency which means that it is not backed by any sort of mineral deposits be it gold or silver. The gold deposits at the federal reserves are therefore not used to back the dollar.

The dollar is instead backed by the U.S. government and its policies which aim to keep the American economy stable.

The<u> other options are wrong</u> because:

  • It is true that the USD being legal tender means it can be used to pay for debt.
  • It is also true that the demand for money increases based on the volume of transactions in the economy.

In conclusion, the U.S. Dollar is not backed by the gold deposits in the Federal reserve but rather by the American government itself.

<em>Find out more at brainly.com/question/2222040.</em>

3 0
2 years ago
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