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gavmur [86]
3 years ago
5

A firm have an inventory turnover of 5 times a year on a cost of goods sold of $800 000.if the firm improves the inventory turno

ver to 8 times a year while the cost of goods sold remains the same, which of the following statement is true?
A)$100,000 is additionally invested in purchasing stock
b)$160,000 is released into working capital
c)$60,000 is additionally invested in purchasing stock
d)$60,000 is released into working capital

​
Business
1 answer:
Lunna [17]3 years ago
3 0

Answer:

d) $60,000 is released into working capital

Explanation:

Inventory turnover is the number of times that a firm buys and sells inventory. A high inventory means that the company sells its stock many times in a year.

the formula for inventory turnover ratio

=Cost of goods sold/ average inventory

If a firm has COGS of $800,000 and an inventory turnover of 5, then the average inventory will be

=$800,000 /5

=$160,000

If the firm improves its  turnover to 8, then the average inventory will be

=$800,000/8

=$100,000

The firm average inventory will  $100,000 as opposed to $160,000 previously.

$60,000  will be released to working capital.

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Beginning balance 10000
Add service on account 50000
Less ending balance 12000

Received from customers
10,000+50,000−12,000=48,000

Hope it helps!
8 0
3 years ago
Tasha is a court reporter for a federal district judge. Her job is to type every word that is stated on the record during a fede
ladessa [460]

Answer:

legal services

Explanation:

4 0
2 years ago
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convenient product is the product that is relatively inexpensive item that merits little shopping effort. Is it true or false?​
gayaneshka [121]

Answer: True

Explanation:

A convenient product is the product that is relatively inexpensive item that merits little shopping effort.

A convenient product refers to an inexpensive product which requires a little amount of effort from the consumer to purchase it. Some examples of convenience products include soft drink, bread, coffee.

Therefore, the statement given is true.

8 0
2 years ago
A restaurant owner in the 1950s does not feel negatively toward African Americans but refuses to serve them in his restaurant be
Minchanka [31]

Answer:

Unprejudiced discriminator.

Explanation:

Unprejudiced discriminator: This is referred to as the people who do not have the prejudice of their own, however, they act when needed or when it is convenient for them to discriminate as their decision is based on other people´s prejudice or socially motivated.

In the given case, a restaurant owner does not discriminatory feelings toward African American, however, due to social pressure, he is forced to discriminate as he refuses to serve them in his restaurant, which is a case of the unprejudiced discriminator.

6 0
3 years ago
XYZ can buy a Monet for $8,200,000 today. She believes that the masterpiece can be sold in 9 years for $19,600,000. What is the
myrzilka [38]

Answer:

c. 10.17%

Explanation:

we can use the future value formula:

future value = present value x (1 + r)ⁿ

  • future value = $19,600,000
  • present value = $8,200,000
  • n = 9

$19,600,000 = $8,200,000 x (1 + r)⁹

$19,600,000 / $8,200,000 = (1 + r)⁹

(1 + r)⁹ = 2.390243902

⁹√(1 + r)⁹ = ⁹√2.390243902⁹√

1 + r = 1.101663943

r = 1.101663943 - 1 = 0.101663943 = 10.17%

4 0
3 years ago
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