ATIQ, a small global jewellery and crafts marketing company, is beginning to expand into other markets in North America outside of “la Belle Province”.Its financial statements are as follows:ATIQ plans to make monthly outgoings of $2,000 in year N+1, in order to meet its financial commitments. These outgoings are made at a relatively regular rate during the year. It generally invests its liquidity (cash) in treasury bills at an average rate of return of 20%. A transaction to buy or sell treasury bills costs the firm $50.ATIQ has the privilege of being among the first customers served by the supplier. Sales of jewellery and accessories average 120 units annually. The cost of an order is $10 and the cost of holding one unit of jewellery or accessory is $2. What is the optimal quantity to order? Its financial statements are as follows:国ATIQ's year-end reviewPassif et avoirs desemenAssetsN+1actionnairesN+1Current liabilities/shortterm liabilitiesCurrent assets/shorter duterm assetsFournisseurs7 850 63 670Clients12 950 20 640rme ses cliel estStock of rawmaterials ander dufinished products10 000 16 650Total of Currentcaisseassets/short termdécaassetsénérUne tTotal ofCurrent liabilities/short termliabilitiesLiabilities and assets22 95037 29063 670Fix assetsof shareholdersNet fixed assets90090 000Long-term liabilitiesal deLong-term debt10 000 13 620er duShareholder's equityOrdinary share capital/Common share capital'êtresoire$et50 000 50 000Retained profits/Profits not distributed50 000Total shareholders'equityale à100 000 50 000rer duTotal liabilities andshareholders' equityTotal current assets117 850127 290117 850127 290

EOQ stands for Economic Order Quantity that indicates the quantity of inventory units to be ordered…

ATIQ, a small global jewellery and crafts marketing company, is beginning to expand into other markets in North America outside of “la Belle Province”. Its financial statements are as follows: ATIQ plans to make monthly outgoings of $2,000 in year N+1, in order to meet its financial commitments. These outgoings are made at a relatively regular rate during the year. It generally invests its liquidity (cash) in treasury bills at an average rate of return of 20%. A transaction to buy or sell treasury bills costs the firm $50. ATIQ has the privilege of being among the first customers served by the supplier. Sales of jewellery and accessories average 120 units annually. The cost of an order is $10 and the cost of holding one unit of jewellery or accessory is $2. What is the optimal quantity to order?

ATIQ, a small global jewellery and crafts marketing company, is beginning to expand into other markets in North America outside of “la Belle Province”. Its financial statements are as follows: ATIQ plans to make monthly outgoings of $2,000 in year N+1, in order to meet its financial commitments. These outgoings are made at a relatively regular rate during the year. It generally invests its liquidity (cash) in treasury bills at an average rate of return of 20%. A transaction to buy or sell treasury bills costs the firm $50. ATIQ has the privilege of being among the first customers served by the supplier. Sales of jewellery and accessories average 120 units annually. The cost of an order is $10 and the cost of holding one unit of jewellery or accessory is $2. What is the optimal quantity to order?

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.4.10P: Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of...

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