Answer:
a.Operating Cycle = Inventory Conversion period + Days Sales Outstanding = 100 + 35 = 135 Days
Cash Conversion Cycle = Inventory Conversion period + Days Sales Outstanding - Days Payables Outstanding
= 100 + 35 - 11 = 124 Days
b.If Carraway were to decide to take full advantage of its credit terms and delay payment until the last possible date , their cash conversion cycle is 100 + 35 - 51 = 84 Days
c.Carraway should take its suppliers offer to finance its inventory with the interest free 35 Day loan
The statement that must be true about the demand for a product if it is inelastic is that, a price increase does not have a significant impact on buying habits. The correct answer would be option B. When the demand is inelastic, this situation means that the demand for a product does not decrease nor increase in corresponds to the rise or fall of its price.
Answer:
E. 115 boxes.
Explanation:
d: 10 boxes/day
p: 36 boxes/day
n: 365 days
s: $60
H: $24 box/year
D: d*n
D= 10*365= 3650 boxes/year
EPQ = 
EPQ=
EPQ= 158.96 = 159 units
I=Q/P * (p-d)
I=159/36 * (36-10)
I=114.83
115 boxes aproximately
Answer: Higgins should report this litigation as a contingent liability.
Explanation: A liability that is contingent upon an event, that is, dependent on a future event that may or may not happen is called contingent liability. Potential law suits, pending investigations are some of the examples of contingent liability.
A contingent liability will only be recorded if there is likely probability that the event on which such liability depends will occur and the amount of liability could be reasonably estimated.
Answer: The answers are provided below.
Explanation:
A stock dividend occurs when the firm uses the money that was meant to be paid to the shareholders as cash dividend to buy additional common shares for them. A stock split occurs when a firm gives two or more new shares to every existing share that an investor holds.
As an investor, I'll consider whether the aim of the company in making a stock split or issuing a stock dividend aligns with my aim of investing in the company. In a case where the aims doesn't align with mine, I'll go and invest in another firm.
A company declaring 100% dividend shows growth and also, as a stakeholder, tax may not be paid by me. Stock split gives room for small investors to invest and it also reduces share price.
