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
ahrayia [7]
3 years ago
12

A company with current-year sales of $4,500,000 and cost of goods sold of $3,248,000 reduced its inventory days from 119 days in

the prior year to 115 days for the current year. Its receivable days slowed from 40 days to 43 days. What was the cash flow effect of these swing-factor efficiency changes
Business
1 answer:
Alina [70]3 years ago
7 0

Answer:

($1391.78)

Explanation:

According to the problem, computation of the given data are as follows,

Sales = $4,500,000  

COG sold = $3,248,000

First we calculate the amount receivable in both 40 and 43 days, then

Amount Receivable = Sale ( Receivable days ÷ 365)

Amount Receivable (40 days) = $4,500,000 ( 40 ÷ 365) = $493,150.68

Amount Receivable (43 days) = $4,500,000 ( 43 ÷ 365) = $530,136.99

So, change in receivables = $530,136.99 - $493,150.68

= $36,986.30

Now we calculate the inventory for both 119 and 115 days

Inventory = COG Sold ( Inventory Days ÷ 365)

Inventory (119 Days) = $3,248,000 ( 119 ÷ 365) = $1,058,936.99

Inventory (115 Days) = $3,248,000 ( 115 ÷ 365) = $1,023,342.47

So, change in inventory = $1,058,936.99-$1,023,342.47

= $35,594.51

So, we can calculate the cashflow effect by using following formula,

Cashflow change = Change in inventory - Change in receivables

By putting the value, we get

Cashflow change = $35,594.51 - $36,986.30

=  ($1391.78) (Bracket denotes negative)

You might be interested in
Jim, a Connecticut resident, ran a red light while he was vacationing in California and collided with Amanda’s car. Amanda suffe
kolezko [41]

Answer: The court must return the excess proceeds to Jim.

Explanation: The excess money left after a property is sold and the debt owe is paid off is termed surplus and it is usually given to the owner of the property sold.

5 0
3 years ago
Which of the following statements is true of a product sales-force structure? A product sales-force structure is characterized b
Klio2033 [76]

Answer:

The correct answer is A product sales-force structure is characterized by specialization along product lines.

Explanation:

Specialization refers to the dedication that a person or group of people makes within the activity to offer a good or sell a service. The execution of the tasks is carried out in a synchronized and collaborative way, or which ensures the willingness and performance of each area in achieving a general sales goal. Each employee is aware of their role within the sales chain, and puts all their efforts so that all the objectives proposed by management can be achieved.

8 0
3 years ago
Utica Company has offered to supply Kingston's entire annual requirements of the part for $53 each. If Kingston buys the part fr
miss Akunina [59]

Answer:

$480,000

Explanation:

Calculation to determine what total relevant costs to make the part internally are

First step is to calculate Relevant cost per unit:

Relevant cost per unit:

Direct materials $6

Direct labor $24

Variable manufacturing overhead $12

Fixed manufacturing overhead ($15 × 0.40) $6

Relevant manufacturing cost $48

Now let determine the Total relevant costs to make the part internally

Total relevant costs to take the part internally=($48 × 10,000)

Total relevant costs to make the part internally = $480,000

Therefore total relevant costs to make the part internally are $480,000

5 0
3 years ago
Faced with incomplete information about the future national economic conditions, many employers have eschewed the tradition of h
Solnce55 [7]

Answer:

Option D is correct

Explanation:

The reason is that the company desires to emphasize control over the economic down turn. Most companies collapse in recession due financial distress. And salary of permanent employees is fixed cost which the company has to pay whatever the situation is. Using freelancer's facilities and temporary workers helps in controlling the cost of the product and ensures the survival of the company.

5 0
3 years ago
If two or more users are waiting for the other user to release a lock before they can proceed, this is known as a ____.
ra1l [238]
The correct answer to go in the blank would be ''Deadlock''.

3 0
3 years ago
Read 2 more answers
Other questions:
  • Marshall Inc. recently hired your consulting firm to improve the company's performance. It has been highly profitable but has be
    15·1 answer
  • Production costs activity use the table below with page 4 of the fasttrack to complete the activity. first shift capacity first
    10·1 answer
  • "Wouldn't it be great if we could get food delivered?" is an example of coming up with a business idea based on what?
    14·2 answers
  • How would your most recent supervisor or teacher rate your dependability compared to others?
    8·1 answer
  • Kathryn is shopping and needs to choose a combination of pants and shirts to buy. She has a total of $24 to spend. Each pair of
    7·1 answer
  • The anchoring and adjustment heuristic come in to play when consumers base their predictions on the quickness and ease with whic
    7·1 answer
  • Standard costs are used in the calculation of: Multiple Choice Quantity and sales variances. Price variances only. Price, quanti
    6·1 answer
  • Why is a spending plan an important part of financial planning? Choose all that are correct. а b C Helps to manage your money in
    13·1 answer
  • When inserting an image that needs to appear directly below a section heading with other text below the image, the image should
    5·2 answers
  • Why do I want to represent my school at homecoming?
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!