Current Attempt in Progress Marigold Furniture sell high end designer furniture. Most of its inventory is sourced from Europe. The company purchases its inventory FOB shipping point and must pay its European suppliers in advance. Once payment is received the inventory is shipped. On average it takes the inventory 8 weeks to arrive. The company's average inventory turnover is 6 times. Most sales are to corporate clients with an average collection period of 65 days. What is Marigold's cash conversion cycle? (Use 365 days for calculation) O 65 days O 121 days 56 days 182 days
Q: The adjusted trial balance for Waterway Design Company at December 31, 2024, which is the end of its…
A: An income statement, also known as a profit and loss statement, is a financial report that…
Q: Using the weighted average method, complete the steps below to calculate the ending inventory units,…
A: Cost of Goods Sold (COGS) is a fundamental accounting metric that represents the direct costs…
Q: Epiphany Industries is considering a new capital budgeting project that will last for three years.…
A: Free cash flow is the cash a company generates after accounting for cash outflows related to…
Q: Weingartner Corporation, a merchandising company, reported sales of 4,800 units for July at a…
A: Income statement is one of the financial statements that shows the profitability, total revenue and…
Q: Kemmerly Company opens in September and plans to purchase wallets for $15 and sell them for $20 per…
A: The budget is prepared to estimate the requirements for the period. The cost of goods sold includes…
Q: Rahman Company began 2022 with 690,000 shares of common stock outstanding. On September 1, 2022…
A: It represents the portion of a company's profit allocated to each outstanding share of common stock.…
Q: Dollars $20,000 $15,000 $10,000 $5,000 $0 1. Break-even point 2. Total sales line 3. Loss area 4.…
A: Breakeven is the point at which an entity is in a situation of no profit and no loss. At this point,…
Q: The unadjusted trial balance of Bonita Co. on June 30, 2024, includes the following selected…
A: Accrual accounting records revenue and expenses when they are earned or incurred, regardless of when…
Q: Projected sales for Vehicle Z are 224,000 units. Current inventory is 27,000 units and the inventory…
A: PRODUCTION BUDGET Production Budget is a Forecast of the Production for the Budgeted Period of an…
Q: 2. The following data were taken from the adjusted trial balance columns of the business of Angela…
A: Income statement is a financial statement that records all the income and expenses of the business…
Q: explain the reasons why accounting information analysts have different types of diagrams and other…
A: Accounting information analysts often use various types of diagrams and visual representations to…
Q: Ike issues $180,000 of 11%, three-year bonds dated January 1, 2021, that pay interest semiannually…
A: “Hey, since there are multiple requirements posted, we will answer first three requirements. If you…
Q: The following information as to earnings and deductions for the weekly pay period ended March 9 was…
A: The net pay is the pay which has been computed from the gross pay when the deductions is deducted…
Q: Bonita Company's inventory records show the following data: Inventory: January 1 Purchases: June 18…
A: Using FIFO method, the oldest inventory is sold out and newer inventory is left in the stock. The…
Q: An owner makes an investment of cash into the business. Such a transaction would include a: Select…
A: The journal entries are prepared to record the transactions on regular basis. The assets and…
Q: Carla Vista Company had sales in 2021 of $1,770,000 on 60,000 units. Variable costs totaled…
A: CVP income statement is the one which is prepared in the cost accounting system. It is prepared to…
Q: (A)Prepare a perpetual inventory record for this merchandise, using the first in, first out (FIFO)…
A: As you have asked multiple sub-parts we can solve only first three sub-parts for you please repost…
Q: The ledger of Mai Company includes the following accounts with normal balances as of December 31: D.…
A: The journal entries are prepared to record the transactions on regular basis. The closing entries…
Q: A plant asset cost $313600 and is estimated to depreciation expense recorded for the third year…
A: The double-declining-balance approach is an accelerated depreciation strategy that distributes…
Q: Problem 11-60 (Algo) Cost Allocation: Step and Reciprocal Methods (LO 11-1) Dunedin Bank has two…
A: for allocating service department costs to operational department we can use various methods.1. Step…
Q: rporate governance differ in multinati
A: Corporate governance in multinational firms refers to the particular structure and methods that…
Q: Product A Unit Contribution Margin LA $ Product B Unit Contribution Margin 10.00 $ 3.00 16.15 46.40…
A: Contribution margin is the difference between total sales and total variable costs of the…
Q: Financial Statements of a Manufacturing Firm The following events took place for Rushmore Biking…
A: An income statement, also known as a profit and loss statement (P&L), is a financial statement…
Q: f the following would NOT affect owner's equity? • a cash receipt from a customer in payment of…
A: Owners Equity indicates the company's net worth or book value and acts as a measure of its financial…
Q: Belozovsky Motors, a car dealership, acquires a used car for $14,000, with terms FOB shipping point.…
A: Inventory is the amount of stock that an entity has, on hand, for the purpose of selling to the…
Q: At the beginning of 2019, Hardin Company had 270,000 shares of $10 par common stock outstanding. it…
A: A corporation's shares are units of equity ownership. Shares exist as a financial asset for some…
Q: ces Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $120…
A: Variable costs are costs that vary with the change in the level of output whereas fixed costs are…
Q: A firm has just ended the calendar year making a sale in the amount of $200,000 of merchandise…
A: A firm sells its goods in order to make a profit. The profit that a firm earns is shown in its…
Q: Sandhill Corporation sells three different models of a mosquito "zapper." Model A12 sells for $49…
A: The break-even point indicates that total units are to be sold by the business entity to recover its…
Q: AU.S. company owns an 80% interest in a company located on Mars. Martian currency the parent company…
A: If any asset or obligation remains after the first recognition of the transaction until the balance…
Q: Huron Company produces a commercial cleaning compound known as Zoom. The direct materia unit of Zoom…
A: Variance analysis is one of technique used in management accounting. Under this analysis, various…
Q: The unadjusted trial balance of Sunland Co. on June 30, 2024, includes the following selected…
A: Unearned revenue is money a company receives upfront for services or products it hasn't delivered…
Q: On September 1, the beginning of its fiscal year, Blossom Ltd. had an inventory of 124 calculators…
A: Journal entries are the first step in the accounting process and serve as the foundation for…
Q: Below are amounts (in millions) from three companies' annual reports. Beginning Accounta Ending…
A: Financial ratios:Financial ratios refer to the mathematical relationship between the two figures of…
Q: The December 31, 2011, balance sheet for Classic Company showed total stockholders' equity of…
A: Stockholders equity means total amount attributable to the shareholders of the company. Any…
Q: and charged a 10% commission on the gross amount of the receivables. All conditions for a sale have…
A: In the context of accounting, journal entries are systematic and chronological records of financial…
Q: At the beginning of Year 2, Oak Consulting had the following normal balances in its accounts.…
A: Trial balance :— It is the statement that shows list of final ending balances of all ledger accounts…
Q: On December 31, Year 1, P Company purchased 80% of the outstanding shares of S Company for $7,840…
A: Investment in Associates and Joint venture and Subsidiary Equity Accounting method - This method is…
Q: Exercise 5-6 (Static) Majority-Owned Subsidiary Acquired at Higher than Book Value LO 5-2 Professor…
A: A consolidation worksheet is a spreadsheet that is used to create annual financial reports for a…
Q: Matthew Corporation is developing its budgets for 2024 and, for the first time, will use the kaizen…
A: INCOME STATEMENTIncome Statement is one of the Important Financial Statements of the Company. Income…
Q: [The following information applies to the questions displayed below.] Tory Enterprises pays $248,400…
A: Depreciation meaning:- Because of the usage, deterioration, or obsolescence, an asset's monetary…
Q: Effect of omitting adjusting entry At March 31, the end of the first month of operations, the usual…
A: Adjusting entries are reported in the books at the end of the period. These are recorded to adjust…
Q: b. Prepare an income statement according to the variable costing concept. Gallatin County Motors…
A: Lets understand the basics.There are two methods for calculating operating income which are,(1)…
Q: Company manufactures widgets. The following data is related to sales and production of the widgets…
A: The contribution margin per unit is calculated as the difference between sales and variable costs.…
Q: Stockholders' equity Paid-in capital Preferred stock, cumulative, 12,167 shares authorized, 7,300…
A: STATEMENT OF SHAREHOLDERS EQUITYStatement of Shareholders Equity is also known as Changes in…
Q: Physical counts of inventory are never made with perpetual inventory systems. True or False True…
A: The perpetual inventory system is the one where the total purchases or total goods available for…
Q: Selected transactions for Blossom Company are presented below in journal form (without…
A: T-ACCOUNTT-Account is also known as Ledger Account. Ledger Account Provides the Closing Balance of…
Q: Oscar, Inc., leased equipment from Reynolds Company on January 1, 2023. Reynolds manufactured the…
A: The lease is a legal agreement where the lessor provides the assets with the right to use to the…
Q: Princess Company's accounting records show the following for the month of July. July 6 July 11 July…
A: Under periodic stock verification, the entire stock is verified at a time at periodic intervals,…
Q: In a joint processing operation, Nolen Company manufactures three grades of sugar from a common…
A: Incremental Analysis :— This analysis shows the comparison between two different alternatives. A…
Step by step
Solved in 3 steps with 2 images
- Global Reach, Inc., is considering opening a new warehouse to serve the Southwest region. Darnell Moore, controller for Global Reach, has been reading about the advantages of foreign trade zones. He wonders if locating in one would be of benefit to his company, which imports about 90 percent of its merchandise (e.g., chess sets from the Philippines, jewelry from Thailand, pottery from Mexico, etc.). Darnell estimates that the new warehouse will store imported merchandise costing about 16.78 million per year. Inventory shrinkage at the warehouse (due to breakage and mishandling) is about 8 percent of the total. The average tariff rate on these imports is 5.5 percent. Required: 1. If Global Reach locates the warehouse in a foreign trade zone, how much will be saved in tariffs? Why? (Round your answer to the nearest dollar.) 2. Suppose that, on average, the merchandise stays in a Global Reach warehouse for nine months before shipment to retailers. Carrying cost for Global Reach is 6 percent per year. If Global Reach locates the warehouse in a foreign trade zone, how much will be saved in carrying costs? What will the total tariff-related savings be? (Round your answers to the nearest dollar.) 3. Suppose that the shifting economic situation leads to a new tariff rate of 13 percent, and a new carrying cost of 6.5 percent per year. To combat these increases, Global Reach has instituted a total quality program emphasizing reducing shrinkage. The new shrinkage rate is 7 percent. Given this new information, if Global Reach locates the warehouse in a foreign trade zone, how much will be saved in carrying costs? What will the total tariff-related savings be? (Round your answers to the nearest dollar.)Kindmart is an international retail store. Kindmart’s managers are considering implementing a new business-to-business (B2B) information system for processing merchandise orders. The current system costs Kindmart $2,000,000 per month and $55 per order. Kindmart has two options, a partially automated B2B and a fully automated B2B system. The partially automated B2B system will have a fixed cost of $6,000,000 per month and a variable cost of $45 per order. The fully automated B2B system has a fixed cost of $14,000,000 per month and a variable cost of $25 per order. Based on data from the past two years, Kindmart has determined the following distribution on monthly orders: Monthly Number of Orders Probability 300,000 0.25 500,000 0.45 700,000 0.30 Q1. Prepare a table showing the cost of each plan for each quantity of monthly orders.Kindmart is an international retail store. Kindmart’s managers are considering implementing a new business-to-business (B2B) information system for processing merchandise orders. The current system costs Kindmart $2,000,000 per month and $55 per order. Kindmart has two options, a partially automated B2B and a fully automated B2B system. The partially automated B2B system will have a fixed cost of $6,000,000 per month and a variable cost of $45 per order. The fully automated B2B system has a fixed cost of $14,000,000 per month and a variable cost of $25 per order. Based on data from the past two years, Kindmart has determined the following distribution on monthly orders: Monthly Number of Orders Probability 300,000 0.25 500,000 0.45 700,000 0.30 Q3. In addition to the information system’s costs, what other factors should Kindmart consider before deciding to implement a…
- Kindmart is an international retail store. Kindmart’s managers are considering implementing a new business-to-business (B2B) information system for processing merchandise orders. The current system costs Kindmart $2,000,000 per month and $55 per order. Kindmart has two options, a partially automated B2B and a fully automated B2B system. The partially automated B2B system will have a fixed cost of $6,000,000 per month and a variable cost of $45 per order. The fully automated B2B system has a fixed cost of $14,000,000 per month and a variable cost of $25 per order. Based on data from the past two years, Kindmart has determined the following distribution on monthly orders: Monthly Number of Orders Probability 300,000 0.25 500,000 0.45 700,000 0.30 Q2. What is the expected cost of each plan?Angela owns a merchandising business that sells imported mugs from other Asian countries. Angela purchases these mugs from an outside supplier once every quarter. She needs to estimate the total quantities to be purchased in order to properly meet product demands for each quarter without having to incur stock outs and loss of customers. Angela has forecasted that unit sales for each quarter will be as follows: 1st Quarter – 15,0002nd Quarter – 25,0003rd Quarter - 35,0004th Quarter – 40,000Angela has initiated a policy that 10% of the anticipated sales for the month must be kept as a minimum balance of the previous month’s ending inventory. As of the 1st Quarter, there are 15,000 mugs unsold and Angela plans to keep 18,000 mugs by the end of the fourth quarter. Each mugs costs P75.00.Prepare a purchases/production budget expressed in quantities to be purchased.Prepare a purchases/production budget expressed in peso values. (Hint: multiple units by the amount) Marilou is currently…Advance Auto purchases a component used in the manufacture of automobile generators directly from the supplier. Advance Auto’s generator production operation, which is operated at a constant rate will require 1000 components per month throughout the year (12,000 units annually). Assume the ordering costs are $25 per order, the unit cost is $2.50 per component, and annual holding costs are 20% of the value of the inventory. Advance Auto has 250 working days per year and a lead time of 5 days. Answer the following inventory policy questions: What is the EOQ for this component? What is the reorder point? What is the cycle time? What are the total annual holding and ordering costs associated with your recommended EOQ?
- A retailing company believes it can sell 4 million of its main product within the upcoming financial year. The inventory manager plans to order its main product forty times over the next year. The carrying cost is $0.03 per product per year. The order cost is $600 per order. Calculate the following: i) The annual carrying costs ECM Manufacturing Company Limited has three (3) possible suppliers, all of which offer different credit terms. Apart from the slight differences in credit terms, their products and services are virtually identical. The credit terms offered by these suppliers are shown in table shown on the next page. Supplier Credit Terms Supplier 1 1/10 net 30 EOM Supplier 2 2/20 net 75 EOM Supplier 3 3/10 net 50 EOM Assuming a 365-day year, answer the following. d. What impact, if any, will “stretching” the accounts payable (net period only) of supplier 3 by 30 days, have on your answer to part b with regards to supplier 3. Ans…Auto Zone purchases replacement brake fluid reservoirs directly from the manufacturer. Demand is roughly 1000 units per month over the year. Ordering costs are $25 per order and the reservoirs are $10.00 per unit. Annual holding costs are 20% of the value of the inventory. There are 311 working days per year and the lead time is 5 days. Address the following inventory management issues that need to be resolved. a) What is the EOQ for this component? b) What is the reorder point? c) What is the cycle time? d) What are the total annual holding and ordering costs associated with your recommended EOQ?Excel Berhad manufactures one product line – the Nexus. Sales of Nexus over thenext few months are planned as follows:1. Demand: July 180,000 units, August 200,000 units, September 240,000 units,October 180,000 units. The selling price for each Nexus is RM5. 2. Debtor receipts: Credit customers (receivables) are expected to pay as follows: 70%during the month of sale and 28% during the following month.The remaining credit customers are expected to go bad (that is, to be uncollectable).Credit customers who pay in the month of sale are entitled to deduct a 2 per centdiscount from the invoice price. 3. Finished goods inventories: Inventories of finished goods are expected to be 50,000units at 1 July. The business’s policy is that, in future, the inventories at the end ofeach month should equal 20 percent of the following month’s planned salesrequirements. 4. Raw materials inventories: Inventories of raw materials is expected to be 50,000 kgon 1 July. The business’s policy is that, in…
- Excel Berhad manufactures one product line – the Nexus. Sales of Nexus over thenext few months are planned as follows:1. Demand: July 180,000 units, August 200,000 units, September 240,000 units,October 180,000 units. The selling price for each Nexus is RM5. 2. Debtor receipts: Credit customers (receivables) are expected to pay as follows: 70%during the month of sale and 28% during the following month.The remaining credit customers are expected to go bad (that is, to be uncollectable).Credit customers who pay in the month of sale are entitled to deduct a 2 per centdiscount from the invoice price. 3. Finished goods inventories: Inventories of finished goods are expected to be 50,000units at 1 July. The business’s policy is that, in future, the inventories at the end ofeach month should equal 20 percent of the following month’s planned salesrequirements. 4. Raw materials inventories: Inventories of raw materials is expected to be 50,000 kgon 1 July. The business’s policy is that, in…Princeton GI Roofing Ltd wants to reduce its total inventory cost using the appropriate EOQ model. Currently, it orders 2170 thick gauge roofing sheets per batch. Annual demand is projected to be 43420 sheets. The ordering cost is Php 120. The average carrying cost is equivalent to 20% of the unit acquisition price of Php 400. Lead time is three days. Assume a 365 day year. Answer the following:g. Based on its current practice, how many times does it order in a year? Express your answer up to the hundredths place (two decimal places). h. Based on its current practice, what is its average inventory level? Express your answer up to the nearest integer or whole number.i. Based on its current practice, what is the company's total annual inventory cost? Express your answer up to the nearest centavo.Angela owns a merchandising business that sells imported mugs from other Asian countries. Angela purchases these mugs from an outside supplier once every quarter. She needs to estimate the total quantities to be purchased in order to properly meet product demands for each quarter without having to incur stock outs and loss of customers. Angela has forecasted that unit sales for each quarter will be as follows: 1st Quarter – 15,000 2nd Quarter – 25,000 3rd Quarter - 35,000 4th Quarter – 40,000 Angela has initiated a policy that 10% of the anticipated sales for the month must be kept as a minimum balance of the previous month’s ending inventory. As of the 1st Quarter, there are 15,000 mugs unsold and Angela plans to keep 18,000 mugs by the end of the fourth quarter. Each mugs costs P75.00. a. Prepare a purchases/production budget expressed in quantities to be purchased. b. Prepare a purchases/production budget expressed in peso values. (Hint: multiple units by the amount)