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timurjin [86]
3 years ago
7

Recall Little’s Law that relates the 3 most important process measures (average inventory, average flow rate, and average flow t

ime). The following statement gives two of these three measures and you must find the third. "The flow unit is accounts receivable dollars. A manufacturer bills $300 million worth of cellular equipment per year. The average amount in accounts receivable is $45 million. How much time does the accounts receivable process take, on average, in years? (i.e., the time that elapses on average from the time customer is billed to the time payment is received)?" Enter the number in years, rounded to 2 decimal points. (For example, report 16.347 years as 16.35.)
Business
1 answer:
Anna11 [10]3 years ago
7 0

Answer: 0.15 years

Explanation:

According to Little's Law, it should be noted that:

I = R × T

where,

I = amount of flow units

R = rate of processing flow units

T = time

For this question,

I = $45 million

R = $300 million

Time will be:

T = I/R

T = 45/300

T = 0.15 years

Therefore, the account receivable process will use an average of 0.15 years.

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alexira [117]
I've taken this quiz, 1.92% is the right answer.
5 0
3 years ago
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On November 30, 2013, Piani Incorporated purchased for cash of $25 per share all 400,000 shares of the outstanding common stock
Alenkinab [10]

Answer:

b. 800,000

Explanation:

Step 1; Calcualate Excess Valuation of Surge in Piani's Consolidated Balance Sheet

Surge's balance sheet as at November 30, 2013 showed a book value of $8,000,000

However, Piani Purchased 400,000 Shares of Surge's  Outstanding Common Stock at $25 each. The total Cost therefore to Piani is

$25× 400,000= $10,000,000

The difference between Surge's book value and Piani's valuation of Surge is

Surge's value in Piani- Surge's book value

$10,000,000-$8,000,000= $2,000,000

Step 2: Calculate the Difference between the Excess Property Fair Value and the Step One Total to arrive at the Goodwill

Out of the $2,000,000; $1,200,000 represents the excess of the fair value of Surge's  Property, Plant and Equipment on November 30, 2013.

The Goodwill Value Therefore is

The difference in Surge's Stock Valuation- Excess Fair Value of Surge's Property, Plant and Equipment

= $2,000,000-$1, 200,000

=$800,000

7 0
3 years ago
Rey Company’s single product sells at a price of $216 per unit. Data for its single product for its first year of operations fol
erastovalidia [21]

Answer:

1. Using Absorption Costing

Income Statement

Sales    20,000 X $216                             = $4,320,000

Less: Cost of Goods Sold (Note 1)            =($1,240,000)

Gross Margin                                             = $3,080,000

Less: Operating Expenses

Selling and Administrative Expense         = ($560,000)

(Note 2)                                                        

Net Income                                                  = $2,520,000

Note:

  1. Cost of goods Sold = All the direct variable cost + direct fixed cost = Direct materials + Direct Labor + Direct Overhead = $20 +$28 + $6 = $54 per unit, Total = $54 X 20,000 units = $1,080,000 + Fixed cost = $160,000 = $1,240,000
  2. Selling And Administrative Expense = Variable + Fixed, Variable = $18 X 20,000 units = $360,000, Fixed Expenses = $200,000, Total = $560,000

2. Using Variable Statement

Sales    20,000 X $216                             = $4,320,000

Less: Variable Costs

Direct Material $20 X 20,000                    = ($400,000)

Direct Labor  $28 X 20,000                       = ($560,000)

Variable Overhead $6 X 20,000               = ($120,000)

Variable Selling Expense $18 X 20,000    = ($360,000)

Contribution Margin                                     = $2,880,000

Less: Fixed Costs

Fixed Overhead                                            = ($160,000)

Fixed Selling & Administrative                     = ($200,000)

Net Income                                                    = $2,520,000

Note: Under Variable Statement first variable expenses are deducted to get the value of contribution, and then fixed expenses are deducted to get net income, whereas in absorption costing firstly manufacturing expenses are deducted to get gross margin and then operating expenses like selling and administrative expenses are deducted to get the net income.

But Net income is same in both cases.

5 0
3 years ago
Derek plans to retire on his 65th birthday. However, he plans to work part-time until he turns 75.00. During these years of part
ser-zykov [4K]

Answer:

Annual deposit= 13,346.55

Explanation:

Giving the following information:

Exactly one year after the day he turns 75.0 when he fully retires, he will begin to make annual withdrawals of $129,100.00 from his retirement account until he turns 94.00. After this final withdrawal, he wants $1.85 million remaining in his account.

He will make contributions to his retirement account from his 26th birthday to his 65th birthday.

Assume an 8.00% interest rate.

First, we need to calculate the amount of money needed at 65.

39 years*129,100 + 1,850,000= $6,884,900

We need to calculate the value at 65:

PV= 6,884,900/(1.08^10)= $3,189,040.85

We need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (3,189,040.85*0.08)/[(1.08^39)-1]= $13,346.55

8 0
3 years ago
An author can register his or her copyright application with the _____. International Trade Administration (ITA) International T
Semmy [17]

Answer:

United States copyright office

Explanation:

hope this helps!

6 0
2 years ago
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