Answer:
(a) 5.41 times
(b) 3.48 times
Explanation:
(a) Accounts receivable turnover for 2017:
= 5.41 times
Working:
= 462,500
(b) Inventory turnover for 2017:
= 3.48 times
Working:
= 575,000
Capital for a month on a balance sheet:
The net working capital formula is calculated by subtracting the current liabilities from the current assets. Here is what the basic equation looks like. Typical current assets that are included in the net working capital calculation are cash, accounts receivable, inventory, and short-term investments.
Answer: The following is not a disadvantage of vertical integration: <u><em>Decreased product quality</em></u>
Vertical integration refers to an arrangement under which the supply chain of a organization is closely-held by that organization. In this mostly each associate of the supply chain bring forth a different commodity or service, and the commodity pools to satisfy a public need.
This has its advantages and disadvantage but nevertheless ,it tends to increase the productivity instead of decreasing it.
<u><em>Therefore, the correct option is (b)</em></u>
Answer:
$56,520
Explanation:
As per given data
Year Sales Working Capital 18%
0 $279,000 ($50,220)
1 $308,000 ($5,220)
2 $314,000 ($1,080)
3 $314,000 $0
4 $314,000 $56,520
As the sales value of year 2, 3 and 4 are same, as capital is adjusted in year 2 and company has equal working capital required in year 3, years 4 is the last year of the project so, working capital will be recovered from the project
Net Working capital will be reimbursed at the end of the project. The accumulated value of investment in working capital will be recorded as cash inflow in the analysis.
Miscavage corporation has two divisions,
The Net Operating Income:
Sales
Less: Variable Cost
Contribution:
Less: traceable Fixed Expenses:
Less: Fixed Expenses:
Net Operating Income:
