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kow [346]
2 years ago
6

3. Asset management ratios Asset management ratios are used to measure how effectively a firm manages its assets, by relating th

e amount a firm has invested in a particular type of asset (or group of assets) to the amount of revenues the asset is generating. Examples of asset management ratios include the average collection period (also called the days sales outstanding ratio), the inventory turnover ratio, the fixed asset turnover ratio, and the total asset turnover ratio. Consider the following case: Monroe Manufacturing has a quick ratio of 2.00x, $34,875 in cash, $19,375 in accounts receivable, some inventory, total current assets of $77,500, and total current liabilities of $27,125. The company reported annual sales of $800,000 in the most recent annual report. Over the past year, how often did Monroe Manufacturing sell and replace its inventory?
Business
1 answer:
Nimfa-mama [501]2 years ago
8 0

Answer:

INVENTORY TURNOVER

Sales : $800,000

Average Inventory  $23,250

Inventory Turnover = $800,000 / $23,250 = 34,41 days.

Explanation:

To find how often the company sell and replace its inventory it's necessary to divide the total sales by the inventory balance, as detailed above.

To find the inventory balance it's necessary consider the total current assets minus the Cash balance and the accounts receivable balance.

Detailed below:

Cash $34,875

Accounts Receivable $ 19,375

Total Current Assets : $77,500

Inventory : 77,500 - 19,375 - 34,875 = $23,250 Inventory.

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A financial adviser manages an equity portfolio for an endowment fund, which has an 8.2% return objective. The adviser makes a s
MArishka [77]

Answer:

The endowment fund is not satisfied with the advisor's performance

Explanation:

Judging from a nominal interest rate perspective where return expected of an investment comprises of real rate of return and an extra return which is a compensation for inflation rate in the economy,the endowment fund is not satisfied with performance of the advisor.

The satisfactory rate of return that would be expected of the advisor is computed below:

nominal interest rate=real rate+inflation rate

real rate is 8.2%

inflation rate is 2.9%

nominal interest rate=8.2%+2.9%

                                  =11.10%

3 0
2 years ago
A robust ______________ can go a long way to reducing project problems over the life of the project and will establish how, when
AysviL [449]

Answer:

Communication plan.

Explanation:

Project management can be defined as the process of designing, planning, developing, leading and execution of a project plan or activities using a set of skills, tools, knowledge, techniques and experience to achieve the set goals and objectives of creating a unique product or service. Generally, projects are considered to be temporary because they usually have a start-time and an end-time to complete, execute or implement the project plan.

The fundamentals of Project Management are considered universal across most businesses and professions.

The fundamentals of Project Management includes;

1. Project initiation

2. Project planning

3. Project execution

4. Monitoring and controlling of the project

5. Adapting and closure of project.

A communication plan can be defined as a project plan which explicitly outlines or states the set of people who needs an information, when it is delivered and what communication channel should be used to deliver the information to the stakeholders.

Hence, a robust communication plan can go a long way to reducing project problems over the life of the project and will establish how, when and to whom information must be supplied.

4 0
2 years ago
Sea Side Enterprises is trying to predict the cost associated with producing its anchors. At a production level of​ 5,300 anchor
Lena [83]

Answer:

The total cost at 9000 anchor is $473400

Explanation:

To come up with the cost equation used by the manager, we need to find the variable cost per unit.

The total cost at production level of 5300 is = 5300 * 54 = $286200

Out of the total costs, $18000 are fixed.

Thus, variable costs at production of 5300 is = 286200 - 18000 = $268200

The variable cost per unit is = 268200 / 5300 = $50.60

Let x be the number of anchors produced.

The cost equation is = 18000 + 50.60x

At 9000 anchors, the total cost will be,

Total cost = 18000 + 50.60 * (9000)  = $473400

8 0
2 years ago
If you sold 17 units this week out of 153 units in inventory what percent of your inventory did you sell?
storchak [24]

Answer:

26%

Explanation:

5 0
2 years ago
Malcolm purchased an old convenience store, and after renovations will open a small vegan grocery. He paid $517,000, of which $4
MrRa [10]

Answer:

amount $524,000 represent the Depreciable basis

Explanation:

given data

paid =  $517,000

building = $417,000

renovations cost = $107,000

amount = $524,000

to find out

What does the amount $524,000 represent

solution

here  amount $524,000 represent the Depreciable basis

because Depreciable basis is the acquisition cost of investment + renovations  .........................1

Depreciable basis amount = $417,000 + $107,000 = $524,000

so here is the investment is depreciable basis

so that we can say that amount $524,000 represent the Depreciable basis

3 0
2 years ago
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