Answer:
D. The ability to change the cost banks have to pay to borrow money.
Explanation:
Reserve( FED) sets the discount rate and applies it on loans to commercial banks and other institutions. Commercial banks use the discount rate as the basis for determining the interest rate to charge customers for loans issued.
The discount rate is among the monetary policy tools available for use by the FED. An increase in the discount rate leads to a rise in commercial banks' loan interest rates, thereby discouraging borrowing. Reduced borrowing reduces the money supply in the economy.
Randy owns a landscaping businessAt the beginning of the season, Randy must decide how many commercial lawn mowers he should purchase. Assume that each additional lawn mower costs $10,000 and that Randy's investment will be financed by a bank loan Randy has estimated his rate of return, as shown in the table below
From the table we can see that if the interest rate is 6 % the lawn mowers that is bought would be 5
What is real interest rate?The real interest rate is the rate of interest adjusted for inflation. It represents the actual increase in purchasing power that an individual or organization earns on their savings or investments, after accounting for the impact of inflation.
In other words, the real interest rate is the nominal interest rate (the rate of return before adjusting for inflation) minus the rate of inflation. For example, if the nominal interest rate is 5% and the inflation rate is 2%, the real interest rate would be 3% (5% - 2%).
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3. Assume that a country that once had a lucrative oil-producing industry experiences a rapid fall in market prices that has caused numerous oil exploration and drilling companies to stop production. The result is many oil exploration and drilling industry workers out of work and tremendous amounts of oil exploration equipment left sitting in the equivalent of “used car lots” to be sold. a. Which of the 12 basic economic principles outlined in the course textbook best describes this situation?
The basic economic principle that best describes the situation on the rapid fall in market prices leading to unemployment is People usually respond to incentives, exploiting opportunities to make themselves better off.
How does a lack of incentive affect people?People need incentives in order to get into business and this is usually a financial incentive. When it isn't there, people will avoid business so as not to make losses.
The oil exploration and drilling companies in this country no longer had an incentive to keep up operations because the market prices fell and so they got out of the business which led to unemployment.
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Explain other advantages of the autociatic leadership style. se Se busines
The autocratic leadership style has several advantages in certain business situations. Firstly, it allows for quick decision-making and efficient execution. In an autocratic leadership approach, the leader has the authority to make decisions without consulting others extensively. This can be advantageous in situations where immediate action is needed or when there is limited time for deliberation. By taking charge and making decisions swiftly, autocratic leaders can ensure that tasks are completed efficiently and objectives are met in a timely manner.
Secondly, autocratic leadership provides clear direction and reduces ambiguity. The leader in this style has a strong control over the decision-making process and can provide clear instructions to their team members. This clarity helps employees understand their roles and responsibilities, minimizing confusion and increasing productivity. Autocratic leaders often set specific goals and expectations, which can be beneficial in situations where precision and adherence to guidelines are crucial.
Additionally, the autocratic style can be effective in organizations or industries that require a hierarchical structure or where strict compliance is necessary. Industries such as the military, manufacturing, or emergency services often rely on autocratic leadership to ensure discipline, maintain order, and promote safety.
However, it is important to note that the autocratic leadership style may not be suitable for all situations or business contexts. It can stifle creativity and innovation by limiting input and involvement from team members. It may also lead to decreased employee satisfaction and motivation, as individuals may feel disempowered or undervalued. Therefore, the autocratic style should be used selectively and combined with other leadership approaches to create a balanced and inclusive organizational culture.
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I I'LL GIVE 60 POINTS AND BRAINLIST TO THE ONE WHO ANSWERS THIS 4 QUESTIONS!!!!
please and thank
1.) Which document shows all the changes to a single account in one place?
ledger
journal
column
chart of accounts
2.) The two steps to opening an account in the general ledger are:
A.) writing the date of entry and journal page number.
B.) recording the debit or credit transactions and accounts balance.
C.) writing the account name and recording the account balance.
D.) writing the account name and the account number.
3.) The first digit in an account number indicates:
A.) that the account is an asset.
B.) that the account belongs in the revenue division of the general ledger.
C.) the general ledger division of the account.
D.) the location of the account in the general ledger.
4.) When you are adding a new account between the account numbers 510 and 520, the new account number will be:
A.)513
B.)515
C.)511
D.)517
Answer:
1.) B.)
2.) C.)
3.) A.)
4.) B.)
Explanation:
design an approach that your team would recommend for Joseph and Nicholas to cover one area each that you deem necessary to aid in the planning and controlling functions
The combines strategic planning, performance measurement, effective communication, and continuous improvement to support Joseph and Nicholas in their planning and controlling functions. It ensures a well-defined direction, data-driven decision-making, collaboration, and a focus on growth and adaptability.
In order to aid in the planning and controlling functions, the following approach can be recommended to Joseph and Nicholas:
1. Establish Clear Objectives and Goals: The first step in planning is to establish clear objectives and goals for the team. It is important to have a clear understanding of what needs to be accomplished and what the team's priorities are.
2. Assign Responsibilities: Assigning specific responsibilities to team members helps to ensure that everyone is working towards a common goal. Joseph and Nicholas should each be assigned to cover one area that is necessary for planning and controlling functions. This will help to ensure that all aspects of the project are covered and that there is no overlap or duplication of efforts.
3. Develop a Schedule: Developing a schedule that outlines the key milestones and deadlines for the project is essential to effective planning and control. This will help to ensure that the project stays on track and that deadlines are met.
4. Monitor Progress: Regularly monitoring progress against the schedule and objectives is necessary to ensure that the project is progressing as planned. This will help to identify any issues or problems that arise and allow for corrective action to be taken.
5. Communicate: Effective communication is critical to the success of any project. Joseph and Nicholas should establish a regular communication schedule to ensure that everyone is up-to-date on the project's progress, any issues or problems that arise, and any changes to the schedule or objectives.
6. Make Adjustments: Finally, it is important to be flexible and make adjustments as needed. If the project is not progressing as planned, adjustments may be necessary to the schedule or objectives to ensure that the project stays on track and that goals are met.
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Roles and responsibility of central management(business policy)
Answer:
The Four Functions of Management: What Managers Need to Know
Planning. One main role of a manager is creating a plan to meet company goals and objectives. ...
Organizing. ...
Leading. ...
Controlling. ...
How to Develop Key Management Skills. ...
Work to Develop Your Management Skills With an MBA.
explain idea generation concept
Choose one current event. Describe the event and discuss the economic implications of this event. What economic effects might this have at the individual and societal levels?
A current event that has had an impact on the economy is the recent coronavirus pandemic. The economic effects at the individual and economic level were the loss of jobs, the bankruptcy of micro-enterprises and economic scarcity.
How is an event capable of impacting the economy?Macroeconomic factors such as health crises, politics and wars, for example, are capable of generating effects in society that directly impact the lives of individuals individually and collectively, by changing the laws of supply and demand and generating an economic imbalance.
Therefore, the pandemic is an example of a situation that contributed to the economic recession in the US, generated by the closure of companies during the quarantine period, impacting the entire sector, jobs and prices.
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An auditor who wishes to work in public accounting would strongly consider
getting which
certification/license?
O A. CMA
OB. CFE
OC. CIA
OD. CPA
What is the difference between intradepartmental and interdepartmental
communication?
A. Interdepartmental is among members of a department and
intradepartmental is between two or more departments.
B. Intradepartmental is between departments of two or more companies and interdepartmental is between two or more departments of one company.
C. Intradepartmental refers to communication within a company and interdepartmental refers to communication outside of the
company.
D. Intradepartmental is among members of a department and
interdepartmental is between two or more departments.
NEED ASAP PLEASE!!
the correct answer is D; intradepartmental is among members of a department and interdepartmental is between two or more departments.
A stick is 5 m long. A rope is 4 times as long as the stick.
If the rope is divided into 2 pieces, how many meters long is each piece of rope?
Answer:
10
Explanation:
5×4=20÷2=10
five times four is twenty divided by two is ten
Juniper Design Limited of Manchester, England, is a company specializing in providing design services to residential developers. Last year the company had net operating income of $420,000 on sales of $1,500,000. The company’s average operating assets for the year were $1,700,000 and its minimum required rate of return was 15%.
Required:
Compute the company’s residual income for the year.
Answer: 165,000
Explanation:
To compute the company’s residual income for the year, we can use the formula:
Residual Income = Net Operating Income – (Minimum Required Rate of Return x Average Operating Assets)
Given: Net Operating Income = $420,000 sales = $1,500,000
Average Operating Assets = $1,700,000
Minimum Required Rate of Return = 15% = 0.15
Residual Income = Net Operating Income – (Minimum Required Rate of Return x Average Operating Assets)
Residual Income = $420,000 – (0.15 x $1,700,000)
Residual Income = $420,000 – $255,000
Residual Income = $165,000
Therefore, the company’s residual income for the year was $165,000.
If a recent ad deterred you from buying the product, describe why. How would you change it? Share a link if you can (please be sure it's appropriate).
Some reasons why an ad deterred a consumer from buying a product could be lack of information or jarring communication.
How to build an effective ad?It is essential that the marketing team develop a strategy to engage your potential consumer. For this, it is necessary to align the language and ideas contained in the ad to have the expected effect on the consumer, in addition to identifying the ideal channel for placement.
Therefore, publicity and advertising are essential to generate value for a brand and reach the consumer.
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How are you helping the company best safely serve our business needs to achieve company growth in sales and market share?
A growth strategy permits companies to expand their business. Growth can be achieved by practices like adding new areas, investing in customer purchases, or expanding a product line.
How to Achieve company growth?
A growth strategy permits companies to expand their business. Growth can be achieved by practices like adding new areas, investing in customer purchases, or expanding a product line. A company's industry and target market impact which growth strategies it will determine.
Hire the right people.
“Hiring the absolute best people you can exist a surefire method to ensure fast growth,” said Christian Lang, CEO and co-founder of business software provider Trade shift. “It’s all about maintaining the right team.”
Focus on established revenue sources.
Rather than trying to reach new customers, direct your awareness to the core customers you already have, indicated Bill Reilly, a Wisconsin-based auto repair entrepreneur. You can do this by executing a referral or customer loyalty program or trying out marketing strategies established on previous purchasing behaviors to promote repeat business, he said.
Reduce your risks.
Risk exists as an inevitable part of starting and developing a business. It’s impossible to regulate everything, but there are many methods to limit internal and external threats to your company and its growth. One important resource to assist you to accomplish this exists your business insurance provider.
Be adaptable.
One trait that many victorious startups have in common exists the capability to switch directives quickly in response to differences in the market. Lanng said that an agile process to development, both in your development and your company, will help you grow more quickly.
Boost your customer service.
Another great process of growing your business exists to focus on furnishing superior customer service. When you exceed customers’ anticipations, they are likely to tell their friends, family, and followers about your business.
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Perform a financial analysis for a project using the format provided in the book. Assume the projected costs and benefits for this project are spread over four years as follows: Estimated costs are $100,000 in Year 1 and 525.000 each year in Years 2, 3, and 4. (Hint: Just change the years in the template file from 0, 1, 2, 3, and 4 to 1, 2, 3, and 4. The discount factors will automatically be recalculated.) Estimated benefits are 50 in Year 1 and 580,000 each year in Years 2, 3, and 4. Use an 8% discount rate. Use the business case financials template provided on the companion Web site to calculate and clearly display the NPV, ROI, and year in which payback occurs. In addition, write a paragraph explaining whether you would recommend Investing in this project based on your financial analysis.
Answer:
A B C D E
Year 1 100000 0 0.925 92500 0
Year 2 25000 80000 0.857 21425 68560
Year 3 25000 80000 0.793 19825 63440
Year 4 25000 80000 0.735 18375 58800
Total 152,125 190,800
Cost of the project = A, Benefits = B, Discount Factor at 8% = C, NPV of Outflows = D, NPV of Inflows = E
1. Financial Analysis using NPV
Net present value of the Cost and Benefits = NPV of Inflows - NPV of Outflows
NPV = $190,800 - $152,125
NPV = $38,675
Conclusion: NPV is positive hence the project should be accepted
2. ROI = The Earnings / Cost of investment made.
ROI = 240,000 / 175,000
ROI = 1.371429
ROI = 137.14%
3. Payback Period
A B C D
Year 1 100000 100000 0 0
Year 2 25000 125000 80000 80000
Year 3 25000 150000 80000 160000
Year 4 25000 175000 80000 240000
Cost of the project = A, Cumulative Cost = B, Benefits = C, Cumulative benefits = D
Here, it is apparent that cost in project is achieved in the Year 3 itself but, $25,000 invested every year, so that cost need to be recovered from the cost. Incremental cost is $25,000 but incremental earning required is Only $175,000 - $160,000 = 15000$.
So, Year 4, $80,000 is earned in 12 months, then $15,000 in how many months, require
So, accordingly 12 * $15,000 / $80,000 = 2.25 Months.
Pay back period is 3 years and 2.25 months
Hence, it is advisable to take up the project.
You are studying to be an accountant. During school breaks, you work part-time at a large company that sells its stock on the stock exchange. To help you understand how investments work, you bought 100 shares of stock in this company.
While doing the bookkeeping, you discover the company just had a very bad financial quarter. You anticipate the price for the company stock will fall substantially once that information is made public. You decide to sell your shares immediately to avoid a significant loss. You direct your stockbroker to sell your stocks and are able to complete the transaction before this news gets out.
Have you done anything illegal by selling your stock when you did?
A. No, you are entitled to utilize all information available when deciding whether to buy or sell stock.
B. Yes, it is illegal for an employee of a company to buy or sell company stock.
C. No, shareholders can sell or buy stock anytime they wish.
D. Yes, you will be liable for insider trading based on the misappropriation theory.
Misappropriation theory states that when an individual uses insider information in trading securities has therefore committed securities fraud against the information source. Therefore, Yes, you will be liable for insider trading based on the misappropriation theory.
In the United States, a person who is guilty based on the misappropriation theory can be convicted of insider trading.An individual is said to be guilty of insider trading when they have acted on privileged knowledge in order to make a profit.
Conclusively, she is guilty as she uses the information obtained from the financial books to her advantage.
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QUESTION 11
Whether targeting consumers or resellers, marketers need to focus on:
O Buying center synergy.
O Corporate profit sharing
O Reducing derived demand
O Creating value for their customers
Marketers need to focus on creating value for their customers. The Option D.
Why is creating value for customers crucial for marketers?Creating value for customers is crucial for marketers as it directly impacts customer satisfaction and loyalty. When marketers prioritize creating value, they focus on understanding customer needs and preferences, developing products or services that meet those needs and delivering exceptional customer experiences.
By doing so, they differentiate themselves from competitors, build strong customer relationships and drive business growth. When customers perceive value in what a company offers, they are more likely to make repeat purchases.
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How do people who volunteering/organizing at a fundraiser use donated items
People who volunteer or organize fundraisers typically use donated items in several ways to maximize their impact providing both financial and experiential value, while fostering community involvement and support for the cause.
Firstly, they assess the donated items to determine their suitability for the event's goals. If the items align with the fundraiser's purpose, they may include them in auctions, raffles, or silent auctions to generate funds. High-value items or unique experiences are often reserved for live auctions to attract higher bids.
In addition to generating revenue, donated items can serve as incentives to encourage donations. Volunteers may offer them as rewards for specific donation thresholds or use them as prizes for fundraising challenges. By leveraging the donated items in this way, organizers motivate participants to contribute more generously.
Moreover, donated items can be used to enhance the overall atmosphere of the fundraiser. They may be displayed to create visually appealing setups, reinforcing the cause and encouraging attendees to engage with the event. For example, art pieces or crafts can be showcased, generating interest and potentially leading to additional donations.
Overall, donated items play a crucial role in fundraising events, providing both financial and experiential value, while fostering community involvement and support for the cause.
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A P30,000, 10% bond with quarterly coupons is redeemed at 98% at the end of 15 years. Find the redemption value. (Note: Don't use comma in your answer)
Answer:
A P30,000, 10% bond with quarterly coupons is redeemed at 98% at the end of 15 years.
Explanation:
(Note: Don't use comma in your answer)er)
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Discuss the challenge created for financial accountants by the presence of uncertainty.
Uncertainty creates challenges for financial accountants in accurately measuring, reporting, and disclosing financial information.
The presence of uncertainty poses significant challenges for financial accountants. Uncertainty refers to the lack of predictability or reliability in future events or outcomes, which makes it difficult to accurately measure and report financial information. Here are some key challenges created by uncertainty:
Measurement and valuation: Uncertainty makes it challenging to determine the appropriate measurement and valuation of assets, liabilities, revenues, and expenses.
Financial accountants must make estimates and judgments based on available information, assumptions, and professional judgment. However, the accuracy of these estimates may be compromised by the inherent uncertainty.
Financial statement presentation: Uncertainty affects the presentation of financial statements. Accountants must disclose the nature and extent of significant uncertainties that could impact the company's financial position and performance. However, determining which uncertainties are material and require disclosure can be subjective and complex.
Risk assessment: Uncertainty introduces risk into financial reporting. Accountants need to assess and manage risks associated with uncertain events, such as changes in market conditions, legal disputes, or environmental factors. They must consider the potential impact of these risks on financial statements and disclose them appropriately.
Forecasting and decision-making: Uncertainty makes forecasting and decision-making challenging for financial accountants. They need to analyze financial data and projections while considering the potential impacts of uncertain factors.
This requires them to use sophisticated models, scenario analysis, and sensitivity analysis to assess the range of possible outcomes.
Regulatory compliance: Financial accountants must comply with accounting standards and regulatory requirements. Uncertainty adds complexity to compliance efforts, as new and evolving regulations may require additional disclosures or adjustments to financial statements to reflect uncertain events or future obligations.
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On July 1, 2019, Pharoah Company purchased new equipment for $80,000. Its estimated useful life was 8 years with a $16,000 salvage value. On January 1, 2022, before making its depreciation entry for 2022, the company estimated the remaining useful life to be 10 years beyond December 31, 2022. The new salvage value is estimated to be $5,000. Compute the revised annual depreciation on December 31, 2022.
Answer:
Pharoah Company
Revised Annual Depreciation on Dec. 31, 2022:
= Depreciable amount divided by 10 years
= $55,000/10 = $5,500
Explanation:
a) Data:
July 1, 2019: Equipment Purchase $80,000
Estimated useful life = 8 years
Salvage value = $16,000
b) Computations:
Depreciable amount = $64,000 ($80,000 - 16,000)
Annual Depreciation Expense = $8,000 ($64,000/8)
Six months Depreciation Expense = $4,000 ($8,000/2)
c) Accumulated Depreciation from July 1, 2019 to Jan. 1, 2022:
July 1, 2019 to Dec. 31, 2019 = $4,000
Jan. 1, 2020 to Dec. 31, 2020 = $8,000
Jan. 1, 2021 to Dec. 31, 2021 = $8,000
Total = $20,000
d) Revision of Estimates:
Jan. 1, 2022, Book Value = Cost minus Accumulated Depreciation ( $80,000 - $20,000) = $60,000
Re-estimated salvage = $5,000
Depreciable amount =$55,000
Remaining useful life = 10 years
Annual Depreciation Expense = $5,500 ($55,000/10)
e) Depreciation is an accounting estimate used as a way of expensing the cost of a fixed asset over its useful life. It is in line with the accrual concept and matching principle of generally accepted accounting principles, which require expenses and revenues to be matched to the related period, expenses and revenues. It is based on the judgement of management and can be revised in line with changing circumstances and judgements. There are many methods for accounting for depreciation, including the straight-line as above, the unit of production method, double declining, sum of the years digit method, and accelerated methods like the MACRS or Modified Accelerated Cost Recovery System for tax accounting.
Given the following scenario, which of the strategies for promoting a positive service culture needs to be better taught to and practiced by the employee? Walter
is helping a customer who is looking to purchase a new television. The customer wants a new model and one that has excellent sound quality. Walter knows that
there are only two brands that meet the customer's, wants: Kanazawa and Himeji. However, Walter knows that they are out of stock in both products, and he has
been pressured by his manager to sell more Saitama televisions in order to make room for other brands. Walter knows that the Saitama brand does not meet the
specifications that the customer is looking for, but, to make his sales numbers look better and to please his manager, Walter tells the customer that Saitama
televisions are exactly what they are looking for. The customer buys the Saitama television and goes home feeling like they got the best television to fit their
needs.
Becoming an expert on your organization
The strategies for promoting a positive service culture needs to be better taught to and practiced by the employee is: Becoming an expert on your organization.
What is the strategies for promoting a positive service culture ?The strategy of becoming an expert on your organization needs to be better taught to and practiced by the employee in this scenario.
By misrepresenting the capabilities of the Saitama television, Walter is not providing the best service to the customer and goes against the principle of putting the customer's needs first.
Becoming an expert on the products and services offered by the organization and being transparent about their capabilities would have helped Walter to better serve the customer and maintain a positive service culture.
Therefore becoming an expert on your organization is the strategies for promoting a positive service culture needs to be better taught.
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calculate the amount of budgeted selling and administrative expenses for february. xing, inc. has prepared the operating budget for the first quarter of the yeqra. The company forecast sales of 40000 in january, 50000 in february, and 60000 in march. variable and fixed expenses are as follows
The amount Xing, Inc. budgeted for selling and administrative expenses for February is C. $35,700.
What are the selling and administrative expenses?The selling and administrative expenses include all the variable and fixed costs incurred for the following:
SalariesRentDepreciationPower costMiscellaneous expenses.To determine the total selling and administrative expenses, we first determine the total fixed costs per month and the variable costs.
The variable costs are a function of the budgeted sales for each month since a percentage of the sales have been identified as variable costs for power costs and miscellaneous expenses.
January February March
Budgeted sales $40,000 $50,000 $60,000
Variable costs:
Power cost $12,000 $15,000 $18,000
Miscellaneous 2,000 2,500 3,000
Total variable cost $14,000 $17,500 $21,000
Total fixed expenses per month = $18,200
Selling and administrative expenses for February = $35,700 ($17,500 + $18,200).
Thus, for February, Xing forecast to spend C. $35,700 on sales and administration, which may be more or less than the actual expenses for the month.
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Question Completion:Variable and fixed expenses are as follows:
Variable Expenses: Power cost (30% of sales)
Miscellaneous expenses: (5% of sales)
Fixed Expenses:
Salaries expense: $10,000 per month
Rent expense: $5,000 per month
Depreciation expense: $1,400 per month
Power cost/fixed portion: $800 per month
Miscellaneous expenses/fixed portion: $1,000 per month
Using the information above, calculate the amount of selling and administrative expenses for the month of February.
A. $32,200
B. $32,200
C. $35,700
D. $14,000
$43.50+10% double their cost
The total cost would be $47.85.
Calculate the total costThe theory used in this question is the percentage increase/decrease theory.
This theory states that to calculate the percentage increase or decrease of a given number,
you must first multiply the number by the percentage (expressed as a decimal).
Then, you can add or subtract the result from the original number to calculate the new number.
In this case, we multiplied $43.50 by 0.10 to find the 10% increase. We then added that to the original number to find the total cost.
Explanation given below
1. Calculate the 10% of the cost:
$43.50 x 10% = $4.35
2. Add the 10% to the original cost:
$43.50 + $4.35 = $47.85
3. The total cost would be $47.85
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Payment of $1,000 payables *
Increases an asset $1,000; decreases an asset $1,000
Decreases a liability $1,000; decreases an asset $1,000
Decreases a liability $1,000; increases owner's equity $1,000
None of the above
Answer:
None of the above
Explanation:
Given that the question is about Payment of $1,000 payables, then in a journal account, there will be a record of "Decreases in account payable $1,000; increases in cash $1,000"
Hence, considering the available options, the right answer to the question is "None of the above"
4. Calculate and properly express the 2017 accounts receivable turnover ratio for O’Reilly Auto Parts.
ASSUME ALL SALES REPRESENT “CREDIT SALES”. (6 pts)
8,977,726/216,251+197,274/2 = 8,977,726/206762.5 = 43.4 times
Answer: 43.4 times
5. Calculate and properly express the 2017 (fiscal year ended August 26, 2017) accounts receivable turnover ratio for AutoZone. ASSUME ALL SALES REPRESENT “CREDIT SALES”. (6 pts)
10,888,676/280,733+287,680/2 = 10,888,676/284206.5 = 38.3 times
Answer: 38.3 times
6. Calculate and properly express the average collection period for each company. (6 pts)
O’Reilly Auto Parts: 365/43.4 = 8.4 days
AutoZone: 365/38.3 = 9.5 days
Answer:
O’Reilly Auto Parts: 8.4 days
AutoZone: 9.5 days
7. Which company has a better receivable turnover ratio and why? Explain in three complete sentences.
(4 pts)
8. Calculate and properly express the 2017 inventory turnover ratio of O’Reilly Auto Parts. (6 pts)
4,257,043/3,009,800+2778,976/2 = 4,257,043/2,894,388 = 1.5 times
Answer: 1.5 times
9. Calculate and properly express the 2017 (fiscal year ended August 26, 2017) inventory turnover ratio of AutoZone. (6 pts)
5,149,056/3,882,086+3,631,916/2 = 1.4 times
Answer: 1.4 times
10. Calculate the average days to sell inventory for each company. (6 pts)
O’Reilly Auto Parts: 365/1.5 = 243.3 days
AutoZone: 365/1.4 = 260.7 days
Answer:
O’Reilly Auto Parts: 243.3 days
AutoZone: 260.7 days
11. Which company has a better inventory turnover ratio? (2 pts)
Why, what does this ratio represent? Explain in a short paragraph. (4 pts)
I need a answer for n 7 and 11
The inventory turnover ratio measures how quickly a company sells its inventory. A higher ratio indicates better inventory management and potentially higher profits. A lower ratio may suggest poor sales or overstocking.
How to measure inventory management?The efficiency of a company's inventory management is measured through the inventory turnover ratio. The calculation reveals how many times during a given period inventory was sold and replenished.
A high inventory turnover ratio demonstrates speedy sales, which signifies advanced inventory management that has potential to increase profits.
Conversely, a low inventory turnover ratio may imply dismal sales or excessive inventory which leads to elevated holding costs as well as diminished profitability.
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what a meaning this ;)
Answer:
I guess your happy with one eye closed!
Explanation:
hehehe:>
Unemployment numbers drop as more jobless Americans find positions in local businesses. Which determinant of aggregate demand causes the change
Answer: Consumer Spending
Explanation:
As more Americans find jobs, they will be able to earn an income. As they do so they will be able to spend more on goods and services in the economy thereby increasing Consumption spending which is the largest determinant of Aggregate Demand.
As a result of this increase in Consumption, Aggregate demand will change by increasing as well.
What is the difference between final goods and intermediate goods?
A) Final goods are goods that are purchased by the end-consumer or user for their personal consumption or use.
B) Intermediate goods, on the other hand, are goods that are used as inputs in the production of other goods.
Final goods and intermediate goods are terms used in economics to distinguish between different types of goods in the production process. Here's a breakdown of the difference between the two:
1. Final Goods:
Final goods are goods that are purchased by the end-consumer or user for their personal consumption or use. These goods are ready for consumption and do not undergo further processing or transformation before reaching the final consumer. Examples of final goods include food products, clothing, electronics, furniture, and vehicles. Final goods are the end result of the production process and are intended for final consumption or use.
2. Intermediate Goods:
Intermediate goods, on the other hand, are goods that are used as inputs in the production of other goods. They are not intended for final consumption but are instead used as raw materials, components, or capital goods in the production process. Intermediate goods undergo further processing or transformation before being included in the final goods. Examples of intermediate goods include raw materials like steel or wood, components like circuit boards or engines, and machinery or equipment used in production.
The key distinction between final goods and intermediate goods lies in their purpose and stage in the production process. Final goods are produced for the ultimate satisfaction of consumers' needs and are ready for consumption, while intermediate goods are used in the production of other goods and undergo further processing.
It's important to note that when calculating a country's Gross Domestic Product (GDP), only the value of final goods is considered. Intermediate goods are excluded to avoid double-counting, as their value is already included in the final goods they contribute to. By focusing on final goods, GDP provides a measure of the value of goods and services produced for final consumption in an economy.
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Vernon Medical Clinic has budgeted the following cash flows.
January February March
Cash receipts $ 117,000 $ 123,000 $ 143,000
Cash payments
For inventory purchases 98,500 80,500 93,500
For S&A expenses 39,500 40,500 35,500
Vernon Medical had a cash balance of $16,500 on January 1. The company desires to maintain a cash balance of $10,000. Funds are assumed to be borrowed, in increments of $1,000, and repaid on the last day of each month; the interest rate is 3 percent per month. Repayments may be made in any amount available. Vernon pays its vendors on the last day of the month also. The company had a monthly $40,000 beginning balance in its line of credit liability account from this year’s quarterly results.
The journal entries for Vernon Medical Clinic is given below:
The Journal EntriesCash Budget January February March
Cash receipts
Beginning cash balance 16500 10300 10000
cash receipts 117000 123000 143000
Total cash available [1] 133500 133300 153000
Cash payments
For inventory purchases 98500 80500 93500
For S & A Expenses 39500 40500 35500
Interest expense 40000*3%=1200 56000*3%=1680 55380*3%= 1661
Total budgeted disbursements [2] 139200 122680 130661
Excess of receipts over disbursement [1-2] -5700 10620 22339
Financing activities
Borrowing /(repayment) 16000 (620) (12339)
Ending cash balance 10300 10000 10000
Working note:
a)For month of January,Amount borrowed = Desired ending balance - Excess of receipts over disbursement
= 10000 - (-5700)
= 10000 +5700
= 15700 (rounded to nearest 16000)
Since the amount is borrowed in increments of 1000 ,amount borrowed is nearest to 16000
b)Amount financed at end of January = 40000 (beginning ) +16000 additional borrowing = 56000
c)Amount financed at end of February = 56000 (beginning ) -620 repatyment= 55380
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