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zvonat [6]
3 years ago
6

A firm have an inventory turnover of 5 times a year on a cost of goods sold of $800 000.if the firm improves the inventory turno

ver to 8 times a year while the cost of goods sold remains the same, which of the following statement is true?
A)$100,000 is additionally invested in purchasing stock
b)$160,000 is released into working capital
c)$60,000 is additionally invested in purchasing stock
d)$60,000 is released into working capital

​
Business
1 answer:
Illusion [34]3 years ago
5 0

Answer:

d)$60,000 is released into working capital

Explanation:

Inventory turnover gives the number of times that a business buys and sells inventory. A high inventory means that a business moves its stock fast, thereby generating cash.

The formula for inventory turnover ratio

=Cost of goods sold/ average inventory

If a firm has COGS of $800,000 and an inventory turnover of 5, then the average inventory will be

=$800,000 /5

= $160,000

should the firm improve turnover to 8, then the average inventory will be

=$800,000/8

=$100,000

It means the firm will be requiring an average inventory of $100,000 as opposed to $160,000 previously. The difference ($60,000) is to be released to working capital.

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Heidi Luking has discovered that several of the sites she has visited recently downloaded small filesto her computer's hard driv
romanna [79]

Answer:

The correct answer is: False.

Explanation:

On the one hand, the <em>"Crackers</em>" is the name that the people with a huge knowledge in cyber security and therefore that they are the ones that mainly focus on explore methods to breach defenses from computers in order to explote the weakness of the computer system so they will be able to have control of the system.

On the other hand, what Heidi discovered is most likely to be a <em>cybervirus</em> that those web pages implanted in their sites in order to breach the system of the person automatically without her knowledge or autorization with the main purpose of just destroying the computer system.  

4 0
3 years ago
TryFit Co. uses process costing to account for the production of energy food bars. Direct materials are added at the beginning o
lubasha [3.4K]

Answer:

$37,654.00

Explanation:

beginning WIP = $13,000 + $10,000 = $23,000

costs added during the month = $42,000 + $46,000 = $88,000

total materials costs = $55,000

materials cost per EUP = $55,000 / 24,000 units = $2.29

total conversion costs = $56,000

conversion cost per EUP = $56,000 / 19,000 = $2.95

ending inventory = (10,000 x $2.29) + (10,000 x $2.95 x 50%) = $37,650

8 0
3 years ago
Why do people donate to charitable organizations? Choose three answers.
inysia [295]
Usually to support a cause for a good reason hope this helps!
4 0
2 years ago
Read 2 more answers
Gladstone Corporation is about to launch a new product. Depending on the success of the new product, Gladstone may have one of f
Andrews [41]

Answer: SEE EXPLANATION

Explanation:

Given the following ;

Values depending on Success

$150M, $135M, $95M, $80M

Risk free rate = 5% = 0.05

Pervebtage to be lost in case of bankruptcy = 25% = 0.25

A.) 0.25 × [( 150 + 135 + 95 + 80) ÷ 1.05] = $109.52 million

Assume a zero-coupon debt with a $100million face value

B.) 0.25 × [( 100 + 100 + (95×0.75) + (80×0.75)) ÷ 1.05] = $78.87 million

C.) Yield to maturity (YTM)

(100M÷78.87M) - 1

1.2679 - 1 = 0.2679 = 26.79%

Expected return = 5%

D.) Equity value

0.25 × [( 150 + 135 + (95×0.75) + (80×0.75)) ÷ 1.05] = $99.11 million

E.) share if no debt is issued

109.52 ÷ 10 = 10.95 per share

F.) Share price if debt of $100M is issued

99.11 ÷ 10 = 9.91 per share

The price differs because bankruptcy cost will Lower the share price.

8 0
3 years ago
The following totals for the month of June were taken from the payroll register of Ford Company. Salaries and wages $40,000 FICA
disa [49]

Answer:

Debit to Salaries and Wages Expense for $40,000

Explanation:

Based on the information given we were told that Salaries and wages was the amount of $40,000 which means that The Appropriate journal entry to record the monthly payroll on June 30 would include a DEBIT TO SALARIES AND WAGES EXPENSE FOR $40,000

Debit to Salaries and Wages Expense for $40,000

(To record monthly payroll)

7 0
3 years ago
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