All categories

3 years ago

Because manufacturers with jit systems produce merchandise closer to the time of sale, they can

1 answer:

8 0

These companies are able to reduce the inventories required to satisfy the demand of the retailers. With a JIT system, the company does not have to worry as much about waste product or overproducing, since the final item is being manufactured just before the deadline. This allows the company to run on a much tighter production schedule and lessens waste.

You might be interested in

Which would you trade on a stock exchange? A.)shares B.)bonds C.)annuities

BaLLatris [955]

Shares are traded on a stock exchange

8 0

3 years ago

In analyzing the value of the firm as a function of capital structure, the present value of the tax shield benefit is offset by

Hoochie [10]

Answer:

The correct answer to the following question will be Option D (Financial distress and agency costs).

Explanation:

A cost of an agency is a form of company's internal expense that comes from an employee working on behalf of action of the principle. Agency costs usually occur from core redundancies, confusion, and delays, such as shareholder and management conflicts of interest.
Distress expense applies to the expenses that a financially distressed company faces beyond the business cost, such as increased capital expenses. Troubled companies tend to have a tougher time fulfilling their financial responsibilities, which turns into a higher chance of default.
When evaluating the company's value as a feature of market structure, the present value of the tax shield gain is balanced by the current value of the anticipated financial distress and agency expenses, which results in an ideal internal market structure.

Therefore, Option C is the right answer.

5 0

3 years ago

Why would a small business conduct less marketing research than a larger, established firm?

labwork [276]

The reason is Marketing research is expensive.
The established firm usually has a large amount of capital at its disposal, so they could do market research in order to strengthen their position.
Small business on the other hand, usually struggle to even barely continuing their operation for the next month.

8 0

3 years ago

Read 2 more answers

The purpose of this category of interview questions is to learn about the interviewees personal attributes

taurus [48]

The purpose of this category of interview questions is to obtain factual information about the interviewee.

5 0

3 years ago

Read 2 more answers

Booker Corporation had the following comparative current assets and current liabilities: Dec. 31, 2017 Dec. 31, 2016 Current ass

stiks02 [169]

Answer:

Liquidity measures for the year 2017 are as under:

Current Ratio = 1.5

Working Capital = $100,000

Acid Test Ratio = 0.95

Accounts Receivables Turnover = 10 times

Inventory turn over = 4 times

Explanation:

Current Ratio

Current Ratio = Current Assets ÷ Current Liabilities

Dec 31, 2017 Dec 31, 2016

$300,000 ÷ $200,000 $245,000 ÷ $155,000

Current Ratio 1.5 1.6

Working Capital

Working Capital = Current Assets – Current Liabilities

Dec 31, 2017 Dec 31, 2016

$300,000 – $200,000 $245,000 – $155,000

Working Capital $100,000 $90,000

Acid Test Ratio

Acid Test Ratio = (Current Assets – Inventory) ÷ Current Liabilities

Dec 31, 2017 Dec 31, 2016

($300,000 – $110,000) ÷ $200,000 ($245,000 – $90,000) ÷ $155,000

Acid Test Ratio 0.95 1.00

Accounts Receivables Turnover Times

Accounts Receivables Turnover = Credit Sales ÷ Average Accounts Receivables

Average Accounts Receivables = (Opening Accounts Receivables + Closing Accounts Receivables) ÷ 2

Average Accounts Receivables = ($55,000 + $95,000) ÷ 2 = $75,000

Accounts Receivables Turnover = $750,000 ÷ $75,000 = 10 Times

Inventory Turnover Times

Inventory Turnover = Cost of Goods Sold ÷ Average Inventory

Average Inventory = (Opening Inventory + Closing Inventory) ÷ 2

Average Inventory = ($110,000 + $90,000) ÷ 2 = $100,000

Inventory Turnover = $400,000 ÷ $100,000 = 4 Times

5 0

3 years ago