All categories

2 years ago

Zumbahlen Inc. has the following balance sheet. How much total operating capital does the firm have?

Business

1 answer:

satela [25.4K]2 years ago

6 0

Answer: the operating capital is $40.00

Explanation:

operating capital is also known as working capital. it is the value of running a business on daily basis. it is also the value of short term resources available for use in daily activities. it is current assets minus current liabilities of a business.

current assets = cash + inventory + account receivable + short term investment = 20+50+20+60= 150

current liabilities = accruals + account payable + notes payable=50+30+30=110

operating capital = 150 - 110 = 40

You might be interested in

Pearson Collections (PC) sells one-pound cans of coffee for $25 each. The variable cost to produce each can is $17.50, and fixed

Scilla [17]

Answer:

200 cans

Explanation:

Given that,

Selling price per can = $25

Variable cost = $17.50 each can

Fixed operating costs = $1,500

Marginal tax rate = 40 percent

Profit per unit = Selling price - Variable cost

= $25 - $17.50

= $7.50

PC’s operating break-even point:

= Fixed cost ÷ Profit per unit

= $1,500 ÷ $7.50

= 200 cans

6 0

2 years ago

Josie recently took a job in the marketing department for Beachside Bagels and Bakery. After just a few days on the job, Josie l

Natalija [7]

Answer: Bureaucratic organization

Explanation:

A bureaucratic organization is an organization with a pyramidal shaped structure thereby decisions are made in an organized manner and there is high formality in its operations. It involves different layers of management from the top executives to managers till it gets to the lower staffs

Authority and decision making generally comes from the top till it gets to lower layers. Examples of bureaucratic organizations can be found in colleges and police departments.

6 0

2 years ago

Read 2 more answers

A company uses an activity-based costing system composed of three processes: tooling, processing, and resources. The company has

Serga [27]

Answer:

d. $520,000

Explanation:

Provided information,

Activities Cost Cost drivers

Tooling $500,000 25 setups

Processing $2,000,000 20,000 direct labors

Resources $800,000 40,000 square feet

Rate per activity

Tooling = $\frac{500,000}{25} = $20,000 per setup$

Processing = $\frac{2,000,000}{20,000} = 100 per labor hour$

Resources = $\frac{800,000}{40,000} = 20 per feet.$

Information for Product D

3 setups = 3 $\times$ $20,000 = $60,000

3,000 direct labor hours = 3,000 $\times$ $100 = $300,000

8,000 square feet = 8,000 $\times$ $20 = $160,000

Total overhead cost assigned = $60,000 + $300,000 + $160,000 = $520,000

3 0

2 years ago

An operation that closes due to an imminent health hazard can reopen only after getting approval from what agency?

Inessa05 [86]

Answer:

the FDA (U.S. Food and Drug Administration)

Explanation:

The Food and Drug Administration is a federal agency, which is allowed under US law to prevent an operation from going on if it determines that an imminent health hazard still exists.

However, according to the FDA food code, "if immediate corrective action is taken, there is no "Imminent Health Hazard," meaning the operation can get approval from the agency to reopen.

3 0

2 years ago

In the process of reconciling its bank statement for January, Maxi's Clothing's accountant compiles the following information:

CaHeK987 [17]

Answer:

(D) $4,055

Explanation:

To find the adjusted book balance, we need the ending balance of the cash book:

Book balance $4,725

Less: bank service charges (25)

Less: EFT (380)

Less: NSF check returned by bank (265)

Adjusted book balance $4,055

Since bank service had been deducted from the bank, Maxis clothing had to deduct the same amount. When bank deducts any money, generally it notifies through text message or sometimes does not notify directly. Therefore, It had to be deducted from the cash book.

Maxi's accounts receivable paid him a check and the firm immediately added the amount to the cash book. When the accountant went for depositing the check, there were not sufficient fund (NSF). Therefore, the amount did not add to the bank balance. Hence, the firm had to deduct it again.

Through Electronic Fund Transfer (EFT), a payment had been made by the bank for Maxi clothing. Since the expense did not deduct from the cash book, the amount had to deduct it to get the adjusted book value.

7 0

2 years ago