I think it’s a loss of $1,000. To be honest I don’t believe the Math adds up to be any of the answers.
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.
Answer: The optimal capital structure maximizes the firm’s stock price.
Explanation:
The Capital Structure of a company refers to the proportion of debt vs equity that it chooses to use to fund its Assets and operations.
The goal of management is to use the capital structure to fund the company in such a way that the market value of a company increases.
The Market value is reflected by the firm's stock price so the optimal capital structure is meant to maximize the firm’s stock price.
Answer:
E. avoid using statistics found on the Internet.
Explanation:
Statistics: It is a science of evaluating data collected by using quantified model and presenting the data in a simplified form.
There are six tips of using statistics in our speeches are:
- Use statistics to quantify your ideas
.
- Use statistics sparingly
.
- Identify the sources of your statistics
.
- Explain your statistics
.
- Round off complicated statistics
.
- Use visual aids to clarify statistical trends.
Hence, it never suggest to avoid using statistics found in the Internet as it is one of the source.
