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gulaghasi [49]
3 years ago
5

Danaher Corporation manufactures a variety of products, including electronic measurement instruments and network communications

products, water quality measurement systems, and medical and dental instruments. Selected financial statement data and related performance indicators follow.
($ in millions) 2012 2013 2014
Sales $18,260.4 $19,118.0 $19,913.8
Cost of goods sold 8,846.1 9,160.4 9,471.3
Average inventory 1,797.40 1,798.50 1,807.50
Selected performance measures:
Gross profit (%) 51.60% 52.10% 52.40%
Inventory turnover ratio 4.92 5.09 5.24


Required:
How well did Danaher manage its inventories over the three-year period?
Business
1 answer:
Nataly_w [17]3 years ago
3 0

Answer:

Danaher Corporation

Danaher managed its inventories well over the three-year period, as it continued to improve its inventory turnover ratio. The company did not engage in overstocking.  It was purchasing inventory every 2 months on the average.  Its sales continued to record improvement over the years.

Explanation:

a) Data and Calculations:

                 ($ in millions) 2012       2013        2014

Sales                        $18,260.4  $19,118.0  $19,913.8

Cost of goods sold      8,846.1     9,160.4      9,471.3

Average inventory       1,797.40    1,798.50  1,807.50

Selected performance measures:

Gross profit (%)             51.60%     52.10%    52.40%

Inventory turnover ratio  4.92       5.09         5.24

B) Danaher had a low inventory turnover ratio in 2012, but this improved in 2013 and 2014.  Usually, a low inventory turnover ratio implies weak sales and the keeping of excess inventory (known as overstocking).  No wonder the gross profit ratio was poorest in 2012 when compared with 2013 and 2014.  The higher inventory turnover ratios in 2013 and 2014 show that the sales for the two years were very strong.

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Use the following method to calculate the yearly depreciation allowances and book values for a firm that has purchased $150,000
Dafna1 [17]

Answer:

a. Straight Line Method Depreciation= $ 2400

b. MACRS

c. Sum-of-Years' Digits

Explanation:

a. Straight Line Method Depreciation=

Purchase Cost- Salvage Value/ No of useful life *depreciation rate

=$ 150,000- $30,000/10 * 20%

=120,000/10* 20%= 12000* 20/100=$ 2400

b. MACRS

Since it is a non-form 10-year property, the company can elect to use either the 150% or 200% declining balance method.

Depreciation in 1st Year = Cost × 1/Useful Life × A × Depreciation Convention

Depreciation in Subsequent Years =

(Cost − Depreciation in Previous Years) × 1/ Recovery Period × A

Where,

A is 100% or 150% or 200%.

Depreciation for the the first year $ 150,000/10 *200%= $30,000

Depreciation for the the 2nd year =$ 150,000-30,000/10 *200%= $24,000

Depreciation for the the third year =$ 150,000-30,000- 24000/10 *200%

=$ 19,200

Depreciation for the the 4th year $ 150,000-30,000-24000-19200/10 *200%=  Note A

Note A: MACRS declining balance changes to straight-line method when that method provides an equal or greater deduction. Deduction under 200% declining balance MACRS for 4th year  would be $ 153,600 ($150000 - $30,000 - $24000 - $19200  × 1/10 × 200%. This is greater than depreciation under straight line method .

c. Sum-of-Years' Digits Method Depreciation

Depreciation Amount = Acquisition Cost - Salvage Value = $ 120,000

Sum of useful life= 10+9+8+7+6+5+4+3+2+1= 55

Depreciation Factor = 10/55, 9/55, 8/55, 7/55 etc.

Depreciation for the 1st year= 10/55* 120,000= $ 21,818.2

Depreciation for the 2nd year= 9/55* 120,000= $ 19 636.4

Depreciation for the 3rd year= 8/55* 120,000=  $17,546

Depreciation for the 4th year= 7/55* 120,000=  $ 15,273

Depreciation for the 5th year= 6/55* 120,000= $ 13,091

Depreciation for the 6th year= 5/55* 120,000= $ 10,909.1

Depreciation for the 7th year= 4/55* 120,000= $ 8727.3

Depreciation for the 8th year= 3/55* 120,000=  $ 6545.5

Depreciation for the 9th year= 2/55* 120,000=  $4363.63

Depreciation for the 10th year= 1/55* 120,000= $ 2181.81

3 0
3 years ago
In an unregulated, competitive market consumer surplus exists because:___________.
Paha777 [63]

Answer: some consumers are willing to pay more than the equilibrium price.

Explanation:

Consumer Surplus is simply the difference between the price that is paid by a consumer and the price that the consumer was willing to pay in the first place.

In an unregulated, competitive market consumer surplus exists because some

consumers are willing to pay more than the equilibrium price.

4 0
3 years ago
Baxter desires to purchase an annuity on January 1, 2014, that yields him five annual cash flows of $10,000 each, with the first
EleoNora [17]

Answer:

$313,288.16

Explanation:

Present value is the sum of discounted cash flows

present value can be calculated using a financial calculator

Cash flow in year 1 and 2 = 0

Cash flow in year 3 to 7 = $10,000

I = 10%

Present value = $313,288.16

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

8 0
3 years ago
For the year ended December​ 31, 2019, Davidson Mart had sales of​ $800,000 and cost of goods sold of​ $600,000. Davidson estima
Anit [1.1K]

Answer:

800,000/600,000=1.33

Profit percentage = 1.33-1=0.33=33%

0.02*800,000=16,000 worth of goods returned

Profit= 0.33*16,000=5280

COGS= 16,000-5280=10,720

Adjusting Entry

                                 Debit                  Credit

Goods returned         10,720

Profit                           5,280

Cash                                                    16,000

Explanation:

3 0
2 years ago
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andre [41]

Answer:

the gourmet food that he was fed was poorly prepared

Explanation:

Shopkeeper's priviledge is the law that allows United States shop owners detain people that shoplifted from their shop.

They must have proof that the person did the crime and also are only able to hold him for a reasonable time.

In the given scenario the shop owner catches Ed red-handed in the act of shoplifting. He and an employee gently restrain Ed in the back room, feeding him gourmet food and wine until the local sheriff finally shows up three days later.

Ed can win a tort of false imprisonment if the gourmet food that he was fed was poorly prepared.

There must be proper care given while the suspect is being detained. Being fed poorly prepared food means he was detained under conditions that could be detrimental to his health

8 0
2 years ago
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