Follow = Multiple thanks

Inventory Analysis A company reports the following: Cost of goods sold $347,480 Average inventory 86,870 Determine (a) the inven

stiks02 [169]

Answer:

a. 4

b. 91.25 Days

Explanation:

a. Inventory Turnover = Cost of goods sold/ Average Inventory

= $347,480 / 86,870

= 4

b. Number of days sales in Inventory = Inventory/ COGS*365

= 86,870 / $347,480 * 365

= 91.25 Days

5 0

3 years ago

Adams Company sells a product whose contribution margin is $10 and selling price is $25.

Karolina [17]

Answer:

answer is b) False

Explanation:

given data

contribution margin = $10

selling price = $25

total fixed costs = $500

break-even point = 100 units

solution

we get here Break even point that is

Break even point = $\frac{fix\ cost}{contribution\ margin}$ ...........1

Break even point = $\frac{500}{10}$

Break even point = 50 units

but we have given break-even point is 100 units

so answer is b) False

6 0

3 years ago

Suppose the following bond quotes for IOU Corporation appear in the financial page of today’s newspaper. Assume the bond has sem

wlad13 [49]

Answer:

a. 4.89%

b. 5.23%

Explanation:

We use the rate formula which is shown in the attached spreadsheet

Given that,

Present value = $2,000 × 108.96% = $2,179.20

Future value or Face value = $2,000

PMT = $2,000 × 5.7% ÷ 2 = $57

NPER = 16 years × 2 = 32 years

The formula is shown below:

= Rate(NPER;PMT;-PV;FV;type)

The present value come in negative

So, after solving this,

a. The yield to maturity of the bond is 4.89%

b. The current yield would be

= 57 × 2 ÷ $2,179.20

= 5.23%

4 0

3 years ago

A corporation can earn 7.5% if it invests in municipal bonds. The corporation can also earn 8.40% (before-tax) by investing in p

Lostsunrise [7]

Answer:

A tax rate of 10.71% should make both both indifferent for investors.

Explanation:

the municipal bonds are income-tax free so we should solve for the tax rate which makes both bonds equaly attractive.

0.075 = after-tax rate

0.084 = pre-tax rate

$pre-tax (1- t) = after-tax\\0.084 (1-t) = 0.075\\1 - t = 0.075 \div 0.084\\t = 1 - 0.075 \div 0.084\\t = 0.10714285$

A tax rate of 10.71% should make both both indifferent for investors.

4 0

3 years ago

Freddie's Market offers customers tissues, canned goods, napkins, and various detergents in basic packaging with no identified b

Irina-Kira [14]

Answer:

True

Explanation:

Generic goods are the products which are named by their product type. The store have many generic goods with lower prices than nationally known brand names. Freddie's Market is also offering its customers generic goods like tissues , napkin and various detergents with no specific brand name. These goods will be less expensive than the brand labelled goods.

3 0

3 years ago

Follow = Multiple thanks ​

Follow = Multiple thanks