1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
zvonat [6]
2 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]2 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.

You might be interested in
Hoffman-LaRoche Ltd. and BASF AG, two international pharmaceutical companies, were ordered to pay $725 million in fines for plot
olya-2409 [2.1K]

Answer:

Political and Legal

Explanation:

Hoffman-LaRoche Ltd. and BASF AG, two international pharmaceutical companies, were ordered to pay $725 million in fines for plotting to raise and fix prices of vitamins used in virtually every home in the U.S. This is an example of how <u>political and legal</u> forces affect the marketing environment.

Business organisations operate within a political system and legal framework. Political factors determine economic policies like taxation and regulations. Business decisions are subject to, and are affected by political and legal factors.

Governments formulate a series of legislations to monitor business activities and protect consumer and social interests.

Such laws would either create new opportunities or threats for the businesses in existence.

In the Scenario above Hoffman-LaRoche and BASF AG must have violated regulations that protect consumer interests put in place by the government by wanting consumers to pay too high for such necessities as vitamins and huge fines have been imposed on them.

7 0
3 years ago
Consider a $1,000 par value bond with a 9% annual coupon. The bond pays interest annually. There are 20 years remaining until ma
Vinvika [58]

Answer:

The multiple choices are:

a. $1132

b. $1044

c. $ 962

d. $1153

e. $ 988

The correct option is C,$962

Explanation:

The price a rational and prudent investor like me would be willing to pay for the bond today is the present worth of future cash inflows receivable from the bond issuer,which comprises of annual coupon interest and the face value at maturity.

=-pv(rate,nper,pmt,fv)

rate is required rate of return expected by investor of 10%

nper is 5 years since the investor intends to hold the bond for 5 years

pmt is the annual coupon interest=$1000*9%=$90

fv is the face value of $1000

=-pv(10%,5,90,1000)=$962.09

The current  price is $962

4 0
3 years ago
Sending your boss a christmas card after he had first sent you one would best be seen as an example of
Sidana [21]
Giving back.
Copying.
Returning a favor.
7 0
3 years ago
Mio was transferred from New York to Germany. He lived and worked in Germany for 340 days in 2020. Mio's salary for 2020 is $190
vfiekz [6]

Answer:

Mio's foreign earned income exclusion is $99,960

Explanation:

The calculation of the Mio's foreign earned income exclusion is given below:

The foreign earned income exclusion limit for 2020 is $107,600

Now the foreign earned income exclusion depend on days equivalent to

=  Foreign earned income exclusion limit × (2020 days ÷ total number of days in a year)

= $107,600 × (340 days ÷ 366 days)

= $99,960

Hence, Mio's foreign earned income exclusion is $99,960

7 0
3 years ago
Sharon is unhappy with her job as a salesperson at a retail store for many reasons. Yesterday a customer asked her where the sha
postnew [5]

Answer:

<u>Customer satisfaction.</u>

Explanation:

Customer satisfaction is an extremely relevant factor for a company as it can directly influence the success or failure of a business.

The whole experience that the customer will have with your company will influence their perception and decision to re-establish relationships with the organization. The company should pay attention to the set of determinants responsible for customer satisfaction, the product must meet their needs, service and service should be cordial and optimized to clarify doubts and assist in the process of purchase and customer loyalty.

So on that issue, an employee like Sharon will negatively impact customer satisfaction, which has not been answered and badly answered. What the organization can do to improve this cycle is to invest in employee training and motivational policies that help increase job satisfaction and thereby increase customer satisfaction.

6 0
3 years ago
Other questions:
  • There are two aspects of efficiency that the equilibrium of market for loanable funds exhibits. Select the TWO statements that c
    6·1 answer
  • The mandatory leadership-training seminar had just been concluded. All of the newly promoted managers at Marc’s Music, Inc. had
    7·1 answer
  • Corny and sweet grows and sells sweet corn at its roadside produce stand. the selling price per dozen is​ $3.75, variable costs
    11·1 answer
  • Gross billings for merchandise sold by Lang Company to its customers last year amounted to $12,520,000; sales returns and allowa
    7·1 answer
  • Maple Corporation and its subsidiary reported consolidated net income of $380,000 for the year ended December 31, 20X5. Maple ow
    9·1 answer
  • Trying to solve every problem on your own shows that you are responsible true or false
    10·2 answers
  • A farmer grows wheat, which she sells to a miller for $90. The miller turns the wheat into flour, which she sells to a baker for
    10·1 answer
  • Sheridan Company uses the percentage-of-receivables method for recording bad debt expense. The Accounts Receivable balance is $2
    5·1 answer
  • Categorize each of the following characteristics as being either more representative of a traditional organization or a lean org
    10·1 answer
  • under which inventory cost flow assumption does inventory on the balance sheet best approximate its current cost?
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!