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Pani-rosa [81]
2 years ago
5

The financial information for Pear Company is provided below: Sales $2.8 million Cost of goods sold $2.3 million Purchases $2.1

million Average receivables $0.6 million Average inventory $0.5 million Average payables $0.2 million The company's cash conversion cycle is closest to: (Choose the closest one.) Select one: A. 122 days B. 192 days C. 129 days D. 114 days
Business
1 answer:
WINSTONCH [101]2 years ago
6 0

Answer:

A. 122 days

Explanation:

The computation of the cash conversion cycle is shown below:

= DAys sales outstanding + days inventory outstanding - days payable outstanding

where

Days sales outstanding is

= 365 ÷ $2.8 ÷ $0.6

= 78.16 days

The days inventory oustandings is

= 365 ÷ $2.3 ÷ $0.5

= 79.35 days

And, the days payable outstanding is

= 365 ÷ $2.1 ÷ $0.2

= 34.76 days

Now the cash conversion cycle is

= 78.16 days + 79.35 days - 34.76 days

= 122.75 days

= 122 days

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Highland Company's standard cost is $250,000. The allowable deviation is ±10%. Its actual costs for six months are as follows Ja
Rasek [7]

Answer:

The month that is lower than the lower control limit is February ($220,000).

Explanation:

Giving the following information:

Highland Company's standard cost is $250,000.

The allowable deviation is ±10%.

Actual Fixed costs:

January $235,000

February 220,000

March 245,000

April 265,000

May 270,000

June 280,000

First, we need to calculate the lower control limit:

Lower control limit= 250,000*0.9= $225,000

The month that is lower than the lower control limit is February ($220,000).

6 0
3 years ago
Seaworthy Designs manufactures special metallic materials and decorative fittings for luxury yachts that require highly skilled
VARVARA [1.3K]

Answer:

$76,000

Explanation:

If we are going to prepare a flexible budget we need to calculate how much Seaworthy should have spent in labor costs in order to produce 2,000 units:

labor cost = 2 hours per unit x $19 per hour x 2,000 units = $76,000

If we compare the flexible budget to Seaworthy's actual costs, we will find an unfavorable variance of $250,000 (=$326,000 - $76,000). Obviously something went wrong with Seaworthy's production.

3 0
3 years ago
Computer Wholesalers restores and resells notebook computers. It originally acquires the notebook computers from corporations up
frozen [14]

Answer:

Yes it does as the company expect to pay for the warranty but doesn't know as it may occur or don't dependion upon the notebook hardware and software performance over the 90-days period

Warranty expense 29,500 debit

   Warranty Liability       29,500 credit

Explanation:

We will record a warrant liability for the 5% of the mount sold. As the warranty liability is generated at the time of sale which occur in December

3 0
3 years ago
Who is responsible for training food workers on safe food handling procedures?
notsponge [240]

Answer:

supervisor, owner or manager

Explanation:

It is always the supervisor, owner or manager's duty to train an employee working in the food industry about the handling procedures and compliance with health policies.

Taking into consideration the specifics of each food industry (various countries and standards), the person in charge should handle proper training or provide adequate courses which teach the employees how to handle food and ensure that the health or food hygiene factors are respected.

6 0
2 years ago
Maria graduates from college and her income increases by ​$35,000 a year. Nothing else changes. Maria decreases the quantity of
tia_tia [17]

Answer:

B. ketchup and chocolate chip cookies are inferior goods 

Explanation:

The options and the question seems not to match. The correct question can be found here: https://www.chegg.com/homework-help/questions-and-answers/maria-graduates-college-income-increases-35-000-year-nothing-else-changes-maria-decreases--q30165223

A normal good is a good whose demand increases when income increases. In this question, winter vacations is a normal good.

An inferior good is a good whose demand increases when income falls and whose demand falls when income rises. In this question, ketchup and chocolate chip cookies are inferior goods.

I hope my answer helps you

6 0
3 years ago
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