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
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.

You might be interested in
Assume there are only two producers of tennis rackets: Wilson and Prince. The market demand for tennis rackets is depicted by th
Bas_tet [7]

Answer:

15 units

Explanation:

Given:

The demand formula, P = 100 – Q  - equation (I)

The marginal revenue formula, MR = 100 – 2Q  - equation (II)

Marginal cost, MC = 40  (constant)

There exists a cartel equilibrium; which means MR = MC

Substituting MC = 40 into equation (II), we have

100 – 2Q = 40

2Q = 100 - 40 = 60

Q = 60/2

= 30

Hence, each firm produces 30/2 = 15 units

6 0
4 years ago
Suppose the GDP is in equilibrium at full employment and the MPC is .80. If government wants to increase its purchase of goods a
garri49 [273]

Answer:

A) increased by $20 billion

Explanation:

The Change in government spending should have a corresponding increase of the MPC multiplied by the change in taxes.

Therefore,

$16billion = 0.8 × change in taxes

Change in taxes = $16billion /0.8 = $20 billion(increase)

3 0
3 years ago
R Co. has outstanding 100 million shares, $1 par common stock, selling for $8 per share. After a 1 for 4 reverse stock split:
natka813 [3]

Answer:

The options are as follows:

R would have 25 million shares, $4 par per share.

The market price per share would be about $2.

Fractional shares would be issued.

Retained earnings would be reduced

The correct is R would have 25 million shares, $4 par per share

Explanation:

The normal split involves increasing the number of shares and reducing the price per share while the reverse stock-split entails reducing the number of shares and increasing price as further demonstrated below:

100 million*1/4=25 million shares

par price=$1*4/1=$4

4 0
3 years ago
"which business function is displayed with the transaction code va03"
taurus [48]

Answer: Sales order is displayed with the transaction code va03.

VA03 is a standard SAP transaction code that works with R/3 SAP systems.

It is one of the nine transaction codes that are associated with sales orders that help organizations deal with sales data, create, alter and display sales orders, displays and monitors lists of sales orders and compare sales and purchase data.

4 0
3 years ago
Read 2 more answers
What type of footwear protects you from chemicals and provides extra traction on slippery floors?
pishuonlain [190]
Its rubber boots which protects <span>you from chemicals and provides extra traction on slippery floors.

</span>
4 0
3 years ago
Read 2 more answers
Other questions:
  • o reduce its stock price, Shriver Food Systems, Inc., declared and issued a 100 percent stock dividend. The company has 800,000
    14·1 answer
  • Nancy and Bill are auto mechanics. Nancy takes 2 hours to replace a clutch and 4 hours to replace a set of brakes. Bill takes 6
    7·1 answer
  • Growth of specialization in the kinds of jobs people hold __________. has slowed dramatically since the 1970s, along with the de
    15·1 answer
  • What is the organisation for supermarket.!
    7·1 answer
  • Locations of Transfer-Oriented Firms Assume the distance between the resource (R ) and the market (M) is 10 miles. A firm’s proc
    5·1 answer
  • Explain how you use the Allowance method and Percent-of-Sales Method to account for uncollectibles.
    5·1 answer
  • Absolute advantage is found by comparing different producers’ a. locational and logistical circumstances. b. input requirements
    15·1 answer
  • A​ firm's production function is best described as
    8·1 answer
  • Which of the following best explains why the service sector is a natural avenue for e-commerce?
    11·1 answer
  • The FDA cannot control the content of celebrity Tweets on prescription drugs.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!