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]
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.

You might be interested in
Which of the following is a PRE-READING activity designed to help build reading comprehension
kondaur [170]
I think the correct answer would be the second option. Paraphrasing the ideas within a document is an activity that would help building reading comprehension. Paraphrasing ideas would require one to understand the context of the sentence so that you can write it in your own way so in a way it helps comprehension.<span />
7 0
3 years ago
Costs that can be traced to a cost object in a cost-effective way are called direct costs.
Fynjy0 [20]

Answer:

a) true

Explanation:

Costs that can be traced to a cost object in a cost-effective way are called direct costs. Sometimes they can literally be seen on the cost object by observation. For example the wood on the table.

7 0
3 years ago
A trial balance:_____.
kakasveta [241]

Answer:

d. All of these answer choices are correct.

Explanation:

There are two sections namely debit sections and credit sections. The total of debit and credit sections is always be matched and equaled

The debit sections reports assets and expenses side

whereas, the credit sections reports revenue, stockholder equity, and the liability side.  

Moreover, the balances are used to prepare the financial statement i.e income statement, balance sheet, etc

The trail balance is prepared three times i.e non adjusted, adjusted and the post-closing trail balance

8 0
3 years ago
Value stocks usually exhibit ______ price-to-book ratios and ______ price-to-earnings ratios.A. low; lowB. low; highC. high; low
AysviL [449]

Answer:

A. low; low

Explanation:

Value stocks usually exhibit low price-to-book ratios and low price-to-earnings ratios

3 0
3 years ago
A customer came to your department with an urgent question. You promised her that you would collect information about her questi
Firdavs [7]

Answer:

Ask your supervisor if you can be late for the meeting.

Explanation:

Customer is the most important aspect of any company because it is a person who buys goods and services from the store or a department. It is important to provide better quality, price, and services for making a healthier customer relationship.

Here, according to the given situation, a customer came to my shop for help. I asked her that I will give an answer by 20 minutes in between my supervisor planned a meeting. So, here the customer is important for us and in this case, I will go to my supervisor and will tell about customer urgent query and will ask for schedule the meeting later.

7 0
3 years ago
Other questions:
  • Khalid has just found out that his friend Jason is terminally ill.This has made him feel sad and lonely at the thought of living
    9·1 answer
  • Which of the following is not a qualitative factor to be considered in a make-or-buy decision?
    15·1 answer
  • Kevin has considered selling franchises of his very successful hardware store. however, he is concerned that the franchises will
    7·1 answer
  • Mercury Company sells tickets in advance for its weekly productions and records the proceeds as Unearned Revenue. At the end of
    12·1 answer
  • Laws designed to promote competition and prevent the formation of monopolies are known as _______ laws
    6·1 answer
  • Microsoft stock price peaked at 6118% of its IPO price more than 13 years after the IPO† Suppose that $15,000 invested in Micros
    14·1 answer
  • On January 1, 2015, Truesdale, Inc., purchased a piece of machinery for use in operations. The total acquisition cost was $33,00
    5·1 answer
  • Which of the following is true for a constant growth stock whose market value is equal to its intrinsic value? a. The stock's ex
    11·1 answer
  • What should be considered when developing a sample design
    5·1 answer
  • When money serves as a common denominator for measuring the exchange rates among goods and services, it performs as a
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!