Answer: c. 10% of their time on expediting orders
Explanation:
Supplier relationship management is an approach to evaluate or assess supplier's contributions to businesses with the aim of improving the business and grow relationship between both parties. The supplier relationship management has helped buyers spend just 10% of their time on expecting orders.
Answer:
Explanation:
a.)
Using Financial calculator, enter the following CFs to find NPV;
CF0 = -1,800,000
C01 =600,000
C02 =600,000
C03 =600,000
C04= 600,000
C05 = 600,000
Interest rate ( I ) = 8%
CPT NPV = $595,626.02
b.)
Profitability Index (PI)
<em>PI= NPV of cash inflows / Initial outlay</em>
Using Financial calculator, enter the following CFs;
Find the NPV of the expected future cash inflows;
CF0 = 0
C01 =600,000
C02 =600,000
C03 =600,000
C04= 600,000
C05 = 600,000
Interest rate ( I ) = 8%
NPV = $2,395,626.02
PI = $2,395,626.02/1,800,000 = 1.331
c.)
You can use a Financial calculator to find the IRR;
CF0 = -1,800,000
C01 =600,000
C02 =600,000
C03 =600,000
C04= 600,000
C05 = 600,000
CPT IRR = 19.86%
d.)
Based on the NPV rule, a company should accept a project if the NPV is greater than 0. This project's NPV of $595,626.02 meets this criteria , therefore, the project should be accepted.
Based on IRR rule, a company should accept a project if the IRR of the project is greater than the cost of capital; which is also the required return. The IRR of this project is 19.86% which is significantly higher than the cost of capital of 8% hence in agreement that the project should be accepted. The Profitability Index is also greater than 1 hence the project should be accepted.
Answer:
$672,000
Explanation:
Net income
$460,000
Less:
Increase in accounts receivable
($83,000)
Add:
Decrease in inventory
$66,000
Add:
Increase in accounts payable
$270,000
Add:
Depreciation expense
$101,000
Less:
Gain on sale of land
($142,000)
Net cash
$672,000
Therefore, the net cash provided by operating activities under the indirect method is $672,000
Answer:
Check the explanation
Explanation:
The Partial retention program is a risk financing expression which id often used by companies in retaining a part of the risk and in transferring of the remaining part.
The advantages and disadvantages of a partial retention program to the Swift Corporation are mentioned below:
Advantages
• Stability of Insurance cover
Partial retention program would enable car owners to know more accurately about the vehicle's insurance cost and the helps them to plan the their car expenses accordingly
• Retained Profits
Risk retention groups would allow policy holders to retain their profits than being passed to a commercial insurer.
• Insured interest
As the markets are uncertain, car owners are likely to be at risk. In such a situation, they would be more receptive in implementing loss control measures that would help in improving the future losses and reducing insurance premiums
Disadvantages
• Shared information
it may be possible that company owners may not want to share their personal details about their own businesses with other parties
• Re-entry into the market
it may happen if Risk retention group fails then reentering the commercial insurance market can turn out to be more expensive with less broad coverage.
Answer:
December 31
Debit : Depreciation $1,800
Credit : Accumulated Depreciation $1,800
Explanation:
Straight line method charges a fixed amount of depreciation based on the formula :
<em>Depreciation Expense = Cost - Salvage Value ÷ Estimated Useful Life</em>
Depreciation Expense = ($10,000 - $1,000) ÷ 5 = $1,800