Question 18 Which of the following statements is CORRECT? a. Other things held constant, it is better to have a relatively short than a relatively long cash conversion cycle. b. Other things held constant, it is better to have a relatively long than a relatively short cash conversion cycle. c. Other things held constant,
Desai Inc. has the following data, in thousands. Assuming a 365-day year, what is the firm's cash conversion cycle? Annual sales = $45,000 Annual cost of goods sold = $30,000 Inventory = $4,500 Accounts receivable = $1,800 Accounts payable = $2,500 a. 28 days b. 32 days c. 35 days d. 39 days e. 43 days
Put it into Excel with the correct formulas. Garrett Industries turns over its inventory 6 times each year, it has an average collection period of 45 days and an average payment period of 30 days. The firm's annual sales are $3 million. Assume there is no difference in the investment per dollar of sales in inventory, receivab
What is the accounting concept to explain how a 3% decline in sales could cause a 21% decline in profits. Also, discuss the effect of declining sales on an organization's margin of safety.
The Hershey Corporation: http://library.corporate-ir.net/library/11/115/115590/items/283950/10K_Hershey[1].pdf In Hershey's 2007 annual report, the management made this claim: a decrease in inventories in 2007 reflecting lower raw material and goods in process inventories resulting from reduced manufacturing requirement
Planning is far more important than day to day control of discretionary costs. Do you agree or disagree? Discuss how planning and day-to-day control of discretionary costs may impact business decisions differently.
Sunshine Oil Company buys crude vegetable oil. Processing this oil results in four products at the split off points: A, B, C, and D. Product C is fully processed at the split off point. Products A, B, and D can be individually further processed into A Plus, B Plus, and D Plus. In the company's most recent month (November),
Can you help me get started on this problem? Thank you! Amfac Company manufactures a single product. The company keeps careful records of manufacturing activities from which the following information has been extracted: ** Table with proper format is attached ** Level of Activity March - Low June - High Num
E4-10 Anna Bellatorre, Inc. manufactures five models of kitchen appliances at its Mesa plant. The company is installing activity-based costing and has identified the following activities performed at its Mesa plant. 1. Designing new models. 2. Purchasing raw materials and parts. 3. St
1- Some scholars argue that organizational structure was in the past, and is today, the primary determinant of behavior in organizations. What is your opinion about this assertion? How the organizational structure can support employees' innovative behavior? 2- The most obvious model introduced by thinking about organizations
1). The manager of the company's pension fund is compensated based entirely on fund performance; he earned $1.2 million last year. As a result, the fund is contemplating a proposal to cap the compensation of fund managers at $100,000. Provide an argument against the proposal. 2). Donut Ville caters to its retirement populat
The standard cost sheet calls for 80 pounds of zinc per batch of 70 faucets. Zinc has a standard price of $5.10 per pound. One thousand pounds of zinc are purchased for $5,530. Ten batches of the faucets are produced, and 840 pounds of zinc are used. There was no beginning zinc inventory. All variances are calculated as soon as
Senge says organizations have six learning challenges (all of which, of course, hinder their ability to truly become "learning organizations"): (1) Identity with individual jobs. 'I am a secretary'. 'I am a financial aid officer.' 'I am a human resource specialist.' Employees understand their tasks and duties; what the
Please answer questions 11,12,22 (see the attachment(s).
See the attached file. Sweditrak Corporation manufactures two models of its exercise equipment: regular (REG) and deluxe (DLX). Its plant has two production departments, fabrication (FAB) and assembly (ASM), and two service departments, maintenance (MNT) and quality control (QLC). The parts for each model are manufactured in
In a latest seminar on internal audit wherein a group of corporate representatives of corporations (privately and publicly held corporations), several issues were raised by the attendees, a number of which are listed below: 1. Establishing an internal audit function/department is not a legal requirement. Consequently, it is a
See attached file for clarity. 1. The manager of MN Company give you the following data to prepare the required purchases for the coming three months (January, February and March) Estimated sales for January $ 100,000 Sales increase by 5% for the coming three months Cost of goods sold (CGS) 60% of sales Beginning i
Gayle Enterprises produces computer equipment and programs for heavy equipment manufacturers. One of the most important parts of the company's new just-in-time production process is quality control. Initially, a traditional cost accounting system was used to assign quality control costs to products. All of the costs of the Qua
Calculate the relationship between CGS and sales, operating expenses and sales Use high-low method to find fixed cost and variable costs of CGS and operating expenses. Reconstruct the income statement of the sample companies using variable costing method.
18. Under a relevant range of production, the production has a. minimum quantities that cannot exceed b. maximum quantities that cannot exceed c. minimum and maximum quantities that cannot exceed d. no minimum or maximum quantities 24. Hanna Company has the following data Year Operating p
See attached file. 1. Over the past few decades, the cost structure of manufacturing companies has shifted. In the early 1900s, direct material costs were substantial while fixed costs represented a small fraction of total manufacturing costs. However, the cost structure has reversed and now fixed costs make up the majority
1. (TCO 1/3) Kellogg Company and its subsidiaries are engaged in the manufacture and marketing of ready-to-eat cereal and convenience foods. In its annual report to shareholders, Kellogg disclosed the following: DISPOSITIONS Last year, the Company sold certain assets and liabilities of the Lender's Bagels business to Aurora
(3) Exercise 7-4 / Incremental Analysis Rustic Interiors, an interior design company, has experienced a drop in business due to an increase in interest rates and a corresponding slowdown in remodeling projects. To stimulate business, the company is considering exhibiting at the Middleton Home and Garden Expo. The exhibit will c
World Airlines has three service departments: (1) ticketing, (2) baggage handling, and (3) engine maintenance.The service department costs are estimated for separate cost pools formed by department and are allocated to two revenue-producing departments: (1) domestic flights and (2) international flights.World does not differenti
Barker Company's break-even point is 10,000 units. It's product sells for $25 and has a $10 variable cost per unit. What is the company's total fixed cost amount? a. $ 250,000 b. $100,000 c. $150,000 d. Fixed costs cannot be computed with the information provided
Mission Roofing performs roofing services for commercial clients. The company recently submitted a bid of $371,000 to the Shawnee School System, computed as follows: Mission adds a 20% profit margin to all jobs, computed on the basis of total direct cost. In Shawnee's case the profit margin amounted to $50,000 ($250,000
Cool Surfboards has two departments that both use a conference room (shared facilities). Total monthly conference room cost is $1,000. The Wave Blaster department has 15 employees that reserved 60 hours of conference room time. The Boogie Break department has 5 employees that reserved 100 hours of conference room time. a
Cool Surfboards has two departments using the services of the Payroll department. Total monthly payroll shared cost is $6,000. The departments allocate payroll costs based on number of employees. The Wave Blaster department has 15 employees and the Boogie Break department has 5 employees. a) What is the amount of payrol
See the attached file. Calculate Car Manufacturing Plant Problem ? Calculate the overhead allocation rate (i.e. burden rate) for each of the model years 1988 through 1990. 1987 1988 1989 1990 Sales Fuel Tanks 70,278 75,196 79,816 83,535 Manifolds 79,459 84,776 89,323 93,120 Doors 41,845 45,174 47,199 49,887 Muff
3-39 Account Analysis Custom Computers is a company started by two engineering students to assemble and market personal computers to faculty and students. The company operates out of the garage of one of the students' homes. From the following costs of a recent month, compute the total cost function and total cost for the mon