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3 years ago

Net working capital is defined as current assets divided by current liabilities.

Business

1 answer:

Ahat [919]3 years ago

7 0

Answer:

The answer is False.

Explanation:

False, because the net working capital is determined by subtracting all the current liabilities from the current assets. But in the question, it says net working capital is determined by dividing the current assets with current liabilities which is wrong. Therefore, if the current assent is 10000 dollars and current liabilities are 5000 dollars then net working capital is 10000 – 5000 = $5000.

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What is the biggest difference in who makes the contributions to 401(k) and IRA retirement plans?

allsm [11]

In a 401k the employer usually matches a percentage and if you are lucky dollar for dollar, where in an IRA it is does an an extra option with a set amount of money usually 2500 or more for each IRA contribution.

5 0

3 years ago

Kunkel Company makes two products and uses a conventional costing system. A single plantwide predetermined overhead rate is comp

Ilia_Sergeevich [38]

Answer:

Results are below.

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Total number of direct labor hours= (1,000*2) + (2,000*7)= 16,000

Predetermined manufacturing overhead rate= 1,200,000 / 16,000

Predetermined manufacturing overhead rate= $75 per direct labor hour

Now, we allocate overhead to each unit and calculate the unitary cost:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Mercon:

Allocated MOH= 75*2= $150

Unitary cost= 150 + 8 + 10= $168

Wurcon:

Allocated MOH= 75*7= $525

Unitary cost= 525 + 6 + 11= $542

Finally, using activity-based costing:

Mercon Wurcon Total

Engineering design time (in hours) 1,000 1,000 2,000

Direct labor-hours 2,000 14,000 16,000

Engineering= 600,000 / 2,000= $300 per design hour

Direct labor= 600,000 / 16,000= $37.5 per direct labor hour

Mercon:

Allocated MOH= 37.5*2 + 300*1= $375

Unitary cost= 375 + 8 + 10= $393

Wurcon:

Allocated MOH= 37.5*7 + 300*0.5= $412.5

Unitary cost= 412.5 + 6 + 11= $429.5

3 0

3 years ago

Nicole is a calendar-year taxpayer who accounts for her business using the cash method. On average, Nicole sends out bills for a

BigorU [14]

Answer:

a) I guess that Nicole bills $12,000 per month, not $512,000.

Assuming that the last time Nicole billed her customers was November, she was able to collect $11,760 before the year ended. I will also assume that the remaining $240 are uncollectible.

If Nicole postpones billing her customers during December, her taxable income as a cash basis taxpayer will decrease by $12,000 x 70% = $8,400

she will be able to save $8,400 x 2% = $168 in current taxes, but she will have to pay them next year anyways.

b) The time value of money should affect Nicole's calculations because she is saving the interests that could be earned by $168 in 1 year. We are not given any specific interest rate but we could use 6% as an example. Nicole will gain $168 x 6% = $10.08

But she will also lose potential interests earned on the $8,400 that she billed later. Using the same interest rate, 6%, she will lose $8,400 x 6% x 1/12 (only 1 month) = $42.

That means that the net result from this = $10.08 - $42 = -$31.92.

As you can see, Nicole is losing money. The higher the interest rate, the more money she will lose.

c) The risk of increasing uncollectible accounts will always exist. Nicole already has around 2% of uncollectible accounts, and combining two bills at one time might lead to a higher percentage of uncollectible accounts. Of course, this depends on her clients, but the risk will increase a little bit or a lot, but it will increase.

4 0

4 years ago

The chief financial officer of a company is responsible for managing cash, accounts receivable, and inventory.

zaharov [31]

Answer:

True

Explanation:

Chief financial officer is one of the key positions at any company or firm. Chief financial officer plays a critical role in managing cash, account receivable and inventory management. He/She is responsible for handling the cash and managing the cash in such a way to remove chances of bankruptcy and shortages. Overall, it is an important post to complete all the tasks related to cash handling and inventory.

7 0

3 years ago

A company having difficulty with timely delivery of parts to its manufacturing plants should look to implementing a supply chain

luda_lava [24]

The answer is false. A company's supply chain describes how crude materials are changed into completed items and dispatched to retailers and clients. Inventory network wasteful aspects can squander as much as 25 percent of an organization's working expenses

5 0

3 years ago