All categories

2 years ago

Condensed financial data are presented below for the Phoenix Corporation:

Business

1 answer:

Solnce55 [7]2 years ago

5 0

Answer:

Part 1.

3.1 times

Part 2.

a. total assets

Part 3

d. the company's ability to generate sufficient cash to repay debt when due.

Explanation:

For Part 1

Inventory turnover measures the activity of liquidity of a company`s inventory. The higher the ratio in comparison, the more efficient the inventory is managed.

Inventory turnover = Cost of Sales ÷ Inventory

therefore,

Inventory turnover = $982,500 ÷ $ 312,500 = 3.1 times

For Part 2

In a common-size Balance Sheet, each item is expressed as a percentage of total assets whereas in a common size Income Statement, Sales revenue is expressed as 100 % and every other item is expressed as a percentage of sales revenue.

For Part 3

Solvency or Liquidity is the ability of short term assets to cover short term liabilities. Also put, it is the company's ability to generate sufficient cash to repay debt when due.

You might be interested in

Consider an exchange-traded call option contract to buy 500 shares with a strike price of $40 and maturity in four months. Expla

kvasek [131]

Answer:

The explanation of the terms of the option contract change is below

Explanation:

a. Every call option contract will cover more shares

= 500 × 1.1

= 550

for computing the 1.1 (1 + 10%)

The strike price will be reduced for each share to

= 40 ÷ 1.1

= $36.364

b. Cash dividend would not adjust the terms of the contract but the contract value would decrease if it is an option to call and increase if it is an option to place

c. Each contract call option will cover more shares

= 500 × 4

= 2,000

The strike price will be reduced for each share to 40 ÷ 4

= $10

3 0

2 years ago

Assume the following: The variable portion of the predetermined overhead rate is $3.00 per direct labor-hour. The standard labor

Artemon [7]

Answer:

Variable overhead efficiency variance= $3,000 favorable

Explanation:

To calculate the variable overhead efficiency variance, we need to use the following formula:

Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate

Standard quantity= 3*15,000= 45,000 hours

Actual quantity= 44,000 hours

Standard rate= $3 per hour

Variable overhead efficiency variance= (45,000 - 44,000)*3

Variable overhead efficiency variance= $3,000 favorable

4 0

2 years ago

Other things the same, if the interest rate falls, then a. firms will want to borrow more, which increases the quantity of loana

Svet_ta [14]

Answer: (a).

Annexure: Since a part of the information was found missing in the question, a similar question has been provided as an attachment for reference.

If the interest rate falls with other things remaining constant, a firm would like to raise more money via debt instruments.

This will lead to an increase in the quantity of loanable funds demanded.

This would further lead to increase in the level of invested funds by the public as it would get cheaper for the corporates to avail loans.

7 0

3 years ago

A company bought a parcel of land twenty years ago. The land is currently worth $575,000. The yearly appreciation rate has been

tekilochka [14]

Answer:

The company paid $278,031

Explanation:

Giving the following information:

A company bought a parcel of land twenty years ago. The land is currently worth $575,000. The yearly appreciation rate has been 3.7%.

To calculate the past value of the land, we need to use the following formula:

PV= FV/(1+i)^n

PV= present value (20 years ago)

n= 20

FV= 575,000

i= 0.037

PV= 575,000 / (1.037^20)

PV= $278,031

3 0

2 years ago

With the segmentation variables identified, the VP of Marketing asks you to think about what the target market would look like f

lilavasa [31]

Answer:

2. Small household: 1-2 members.

Explanation:

The small household will require lesser things. The Sauber washer-dryer combo is suitable for small houses where there are 1 or 2 people living there. It is suitable for newly wed couple or old aged couple or 2 people living together on sharing basis. The best suited is to target such households for marketing of new washer dryer combo.

4 0

2 years ago