when comparing a retail business to a service business, the financial statement that changes the most is the

The grocery industry has an annual inventory turnover of about 13 times. Organic Grocers, Inc., had a cost of goods sold last y

s344n2d4d5 [400]

Answer:

What was Organic Grocers' inventory turnover

ORGANIC

11,58 INVENTORY TURNOVER

Explanation:

The Organic company compared with the industry works with more inventory than the market, which means that the company is less efficient than the Grocery Industry in Inventory management .

ORGANIC

11,58 INVENTORY TURNOVER

11.680,000 Cost Of Goods

1.008,880 Average Inventory

32 DAYS IN INVENTORY

To calculate the Inventory Turnover ratio it's necessary to calculate the average inventory of the year ($1,008,880) , take the Total Cost of Goods ($11,680,000) and divide it by the Average Inventory, the result it's the Inventory Turnover of the company, in this case 11,58

To find the days in inventory we have to divide 365 (days of the year) by the Inventory Turnover, 11,58 the result is 32 days.

To have a similar Inventory Turnover as the industry the company needs to low the average inventory to $898,524.

ORGANIC

13,00 INVENTORY TURNOVER

11.680,000 Cost Of Goods

898,524 Average Inventory

28 DAYS IN INVENTORY

8 0

3 years ago

If managers are not owners of their company, then they are ________.

madam [21]

It is called an agent. They are the person who concurs and is approved to follow up for another, a central, to legitimately tie a person specifically business exchanges with outsiders as per an organization relationship.
The agent is the gathering who is lawfully approved to follow up for the primary in the key's business exchange. The specialist owes the primary a guardian obligation. This implies the specialist is committed to act to the greatest advantage of the main. The central owes the operator a few obligations too.

4 0

3 years ago

Portions of the financial statements for Parnell Company are provided below. PARNELL COMPANY Income Statement For the Year Ended

m_a_m_a [10]

Answer:

Net Cash flow from Operating Activities (Direct Method) = $343

Net Cash flow from Operating Activities (Indirect Method) = $343

Explanation:

Cash Flow Statement - Operating Activities (Direct Method)

Amount in $

Cash receipts from Customer (219+770-321) 668

Less: Cash paid to suppliers (120+285-207-98) -100

Cash paid Employees (96+117-108) -105

Cash Paid to Insurance (69+37-85) -21

Cash Generated from operation 442

Less: Interest paid (47-19) -28

Income tax paid (55+82-66) -71

Net Cash flow from Operating Activities 343

Cash Flow Statement - Operating Activities (Indirect Method)

Amount in $

Net Income 82

Add: Depreciation Expenses 120

Loss on sale of Machinery 12

Decrease in Inventory (422-324) 98

Increase in Account payable (207-120) 87

Increase in salaries payable (108-96) 12

Decrease in prepaid Insurance (69-85) 16

Decrease in Bond Discount (184-203) 19

Increase in Deferred Tax Liabilities (66-55) 11

Less: Gain on sale of Building -12

Increase Accounts receivable (321-219) -102

Net Cash flow from Operating Activities 343

6 0

3 years ago

Annually, Monet Corp. awards each of its employees two weeks of paid vacation, which can be carried over if not used. As of Dece

Zina [86]

Answer:

$20,000

Explanation:

Calculation for the liability that should be reported for vacation pay

Using this formula

Liability=Vacation weeks*Compensation averaged per week for Year 1

Let plug in the formula

Liability=20 weeks × $1,000 per week

Liability = $20,000

Therefore the amount of liability that should be reported for vacation pay will be $20,000

5 0

3 years ago

Consider the following two projects. Both have costs of $5,000 in Year 1. Project 1 provides benefits of $2,000 in each of the f

frutty [35]

Answer:

1. Compute the net benefits using a discount rate of 6 percent.

Net befit of Project 1 = $629.04

Net befit of Project 2 = $1,578.47

2. Repeat using a discount rate of 12 percent.

Net befit of Project 1 = $339.38

Net befit of Project 2 = - $373.39

3. What can you conclude from this exercise?

(a) Project 2 should be chosen when the discount rate is 6 percent.

(b) Project 1 should be chosen when the discount rate is 12 percent.

Explanation:

Note: See the attached excel file for the calculations of net benefits for Project 1 and Project 2.

3. What can you conclude from this exercise?

(a) When a discount rate of 6 percent is used, both Project 1 and Project 2 have positive net benefit. But the net benefit of Project 2 of $1,578.47 is higher than the net benefit of Project 1 of $629.04.

Therefore, project 2 should be chosen when the discount rate is 6 percent.

(a) When a discount rate of 12 percent is used, only Project 1 has a net benefit of $339.38, but the net benefit of Project 2 is negative at minus $373.39.

Therefore, project 1 should be chosen when the discount rate is 12 percent.

Download xlsx

6 0

3 years ago