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Lilit [14]
3 years ago
13

Mr. David decision to increase inventory holdings resulted from the consistent pressure of Golden Cup’s Board of Directors to in

crease amount of inventories. Mr. David’s own opinion was that Golden cup is holding enough inventory to keep the business running without costing the company lots of money on inventory carrying costs. On the other hand, BOD believes that in such a dynamic industry, holding more inventory is necessary to keep smooth business operations.
Required:

a. How long does it currently take the company to turnover its inventory?

b. Do you agree with Mr. David’s opinion? Or, With the BOD? And why? Knowing that industry average inventory turnover is 8.
Business
1 answer:
vitfil [10]3 years ago
7 0

Answer:

the information is missing, so I looked for a similar question and found the attached image:

a) days inventory on hand = (average inventory / cost of goods sold) x 365 = ($14,000 / $120,000) x 365 = 42.58 days

b) inventory turnover ratio = cost of goods sold / average inventory = $120,000 / $14,000 = 8.57

I agree with Mr. David because the inventory turnover ratio of Golden Cup is already higher than the industry's average. That means that Golden Cup's current inventory level is appropriate and increasing it would only result in higher costs but would have very little influence on the company's sales.

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List four decision making techniques
Elenna [48]
Command – decisions are made with no involvement.
Consult – invite input from others.
Vote – discuss options and then call for a vote.
Consensus – talk until everyone agrees to one decision
3 0
3 years ago
Bonds are a far more important source of financing than are stocks B. Financial intermediaries such as banks are the least impor
Anna71 [15]

Answer:

Bonds are a far more important source of financing than are stocks

Explanation:

There is so much of risk associated with the issue of stock. Though it is essential for any business to issue some stock, but bonds are always favorable as they have a defined maturity, defined amount associated, and defined interest payment.

There is no direct payment of interest in bonds but the expense is to be recorded in books as per the matching and accrual principle.

The discounted value of interest to be paid on maturity is recorded.

Further, there is a tax benefit on bond payments.

5 0
4 years ago
Which is true about the workplace of Construction workers? It can change. It is never outdoors. It can be in an existing buildin
rosijanka [135]

Answer:

#1, It can change and #3, it can be in an existing building to repair or remodel

Explanation:

Construction is not at a desk.

6 0
4 years ago
Read 2 more answers
Assets are 300,000 and equity is 100,000, assets increase 80,000 liabilities increase 50,000. what is equity at year end?
mojhsa [17]
<span>Assets - equity = liabilities
  So liability before the increase is:
 300, 000 - 100, 000 = 200, 000
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 New Equity = New Assets - New liability.
 New Equity = 380, 000 - 250, 000 = 130, 000.</span>
6 0
3 years ago
In tax year 2020, a married taxpayer with AGI of $300,000 had gross investment income of $6,150 (which included a long-term capi
Irina-Kira [14]

The amount of net investment income tax that the taxpayer is required to pay is $231.

<h3 />

<h3>What is net investment income tax?</h3>

Net Investment Income Tax are generally imposed by the Internal Revenue on entities' net investment income.

Net investment income tax = ($6,150 - $75) * 3.8%

Net investment income tax = $6,050 * 3.8%

Net investment income tax = $231

In conclusion, the amount of net investment income tax that the taxpayer is required to pay is $231.

Read more about income tax

<em>brainly.com/question/25257355</em>

8 0
2 years ago
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