If the Cost of Sales for Company Z is $912,500 for the 2016 year, and the Days I

Question

If the Cost of Sales for Company Z is $912,500 for the 2016 year, and the Days Inventory Held is 25. The value of the Inventory at the end of 2016 is: A. $ 62,500 B. $ 36,500 C. $ 3,042 D. $ 2,500 Which of the following is likely to cause the largest Cash Outflow: A. Sale of a 30 Story Office building owned by the company for $120 million. B. Purchase a $20,000 copy machine. C. Openings a $50,000 line of credit. D. An acquisition of a competitor for $1.0 million in stock. A company comparing the use of Straight Line Depreciation (SLD) and Accelerated Depreciation (DDB) in the first year subsequent to the purchase of a capital asset would find: A. The Fixed Asset Turnover ratio is highest using SLD. B. The Fixed Asset Turnover ratio is highest using DDB. C. No difference in the Fixed Asset Turnover ratio. D. The Total Asset Turnover ratio is highest using SLD.

Explanation / Answer

inventory turnover = 365/25

sales/ value of the Inventory at the end of 2016 = 365/25

value of the Inventory at the end of 2016 = 62,500

B. Purchase a $20,000 copy machine.

A. The Fixed Asset Turnover ratio is highest using DDB. (since average asset will be lower)

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.