The needs and comforts necessary for daily life, as well as those you wish to have in the future, are purchases that affect:

This information is available for the Automotive and Other Operations Divisions of General Motors Corporation for 2006. General

Paraphin [41]

Answer:

A. Inventory turnover ratio = 5.927

B. Current ratio = 0.95

C. Current ratio after adjusting for the LIFO reserve = 0.97

Explanation:

Requirement A

We know,

Inventory turnover ratio = Cost of goods sold ÷ Average inventory

Given,

Cost of goods sold = 164,682

Average inventory = Beginning inventory + Ending inventory

Average inventory = $13,862 + $13,921

Average inventory = $27,783

Putting the values into the formula, we will get

Inventory turnover ratio = Cost of goods sold ÷ Average inventory

Inventory turnover ratio = $164,682 ÷ $27,783

Inventory turnover ratio = 5.927

We know,

Days in inventory = $365 ÷ $5.927

Days in inventory = 61.6 days

Requirement B

We know,

Current ratio = Current asset ÷ Current liabilities

Given,

Current asset = $64,131

Current liabilities = $67,822

Putting the values into the formula, we can get

Current ratio = Current asset ÷ Current liabilities

Current ratio = $64,131 ÷ $67,822

Current ratio = 0.95

We know,

The current ratio shows us how a company pays its current liabilities.

We assume the inventory is reported in the current asset using the LIFO method.

Requirement C

We know,

Current ratio after adjusting for the LIFO reserve = (Current asset + LIFO reserve) ÷ Current liabilities.

Given,

Current asset = $64,131

LIFO reserve = 1,508

Current liabilities = $67,822

Putting the values into the formula, we can get

Current ratio after adjusting for the LIFO reserve = (Current asset + LIFO reserve) ÷ Current liabilities

Current ratio after adjusting for the LIFO reserve = ($64,131 + 1,508) ÷ $67,822

Current ratio after adjusting for the LIFO reserve = 65,639 ÷ $67,822 = 0.97

Current ratio after adjusting for the LIFO reserve = 0.97

8 0

3 years ago

In today's business environment, companies have to find ways to remain profitable by coping with increased competition and rapid

tigry1 [53]

Answer: broad span of control

Explanation: Reorganizing and eliminating layers of management in order to remain profitable often results in a broad span of control. When layers of management are eliminated, organizations tend to get flatter (a flat organization consists of fewer layers of management), spans of control (which are the areas of activity and number of functions, these managers are responsible for) get wider, and the remaining managers usually empower employees to make more decisions due to wider spans of control.

3 0

4 years ago

A business is sued because its neglect led to damage to a private home in a

QveST [7]

Answer:I think it is B punitive damages

Explanation:

7 0

2 years ago

Laura is forecasting the time and cost of developing an intranet for a new customer. Her department has completed six such intra

patriot [66]

Answer: E. Learning Curve

Explanation: The learning curve is usually adopted in evaluating the association between cost and output over a certain period of time. The learning curve shows how usually indicates the changes in cost and output associated with a task as employees or workers start to engage in a certain task or function. Generally, initial task performance by an employee usually result in higher cost output with gradual reduction in cost becoming visible as the Repetition of such task is being embarked upon by the employee.

7 0

3 years ago

XYZ Development, Inc. leases commercial space to businesses. Most of the leases are long-term, from five to fifteen years in len

adoni [48]

Answer:

B. Escalator Clause

Explanation:

XYZ development acts as landlord to businesses, there is agreement that rent can change based on the level of tax. An escalator clause is a clause in any agreement that gives room for increase in prices under certain condition. If an agreement has got an escalator clause, if for instance the tax rate rises, then the prices rise proportionately. In this case of XYZ Development Inc., the escalator clause is in use. The correct answer is B.

3 0

3 years ago