300= 17 (F) Average Collection Period Average Collection Period = 365 ÷ Receivables Turnover Ratio 365 days/ 17.1= 21.3 days 21.3 (G) Inventory Turnover 8.8 Inventory Turnover Ratio = Cost of Goods Sold ÷ Average Inventory $1,058,540/[($115,500+$126,000)]/2= $1,058,540/$120,750= 8.8 times (H) Days in Inventory Days in Inventory = 365 ÷ Inventory Turnover Ratio 365 days/ 8.8= 41.5 days 41.5 (I) Times Interest Earned Net Income + Interest Expense + Tax Expense $332,000/ $22,000= 15
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HZ University of Applied Sciences, AoBACourse code: CU04319Course name: Start up your own companyTeachers: W. de Veij, V. Hartog | Period: 121, November 2012Date: November 9th, 2012Time: 09:00 – 09:45Number of pages (check): 5 | Remarks: NO MOBILE TELEPHONES during examinations. Problem 1 (maximum 10 marks) At the beginning of the airline industry, an airplane could carry around 100 people. Nowadays, airplanes such as Airbus A380, can carry 800 people. Required: How is this phenomena
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| 180,970 | + Sales Force Expense | 0 | 162,203 | 240,746 | 325,262 | + Sales Office Expense | 430,000 | 470,000 | 570,000 | 450,000 | + Marketing Research | 0 | 15,000 | 15,000 | 15,000 | + Shipping | 0 | 43,122 | 52,304 | 67,445 | + Inventory Holding Costs | 0 | 15,210 | 0 | 13,676 | + Excess Capacity Cost | 0 | 63,868 | 0 | 228,381 | + Depreciation | 0 | 25,000 | 25,000 | 50,000 | = Total Expenses | 550,000 | 1,049,663 | 1,082,020 | 1,330,734 | | | | | | | | | | |
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1. Explain the different concepts of Job Design. Job Design specifies the tasks that constitute a job for an individual or a group. There are five components of job design, namely: • Job specialization-it suggested division of labor which can be done in several ways such as development of dexterity and faster learning by the employee because of repetition, less loss of time because employees would not be changing jobs or tools and development of specialized tools and the reduction of investment
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calculations of liquidity, profitability, and solvency ratios. The liquidity, profitability, and solvency ratios allow users to identify the financial health of Kudler Foods. The liquidity ratios include the current ratio, acid-test ratio, and inventory turnover. Kudler Fine Foods has no accounts receivables so there was no need for a receivables turnover calculation. The liquidity ratios show that the amount of liquid assets is high in comparison to the industry average. This means that Kudler
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lower cost of market inventory on valuation, Capitalizing interest on building construction, Recording gain or loss on asset disposal, and Adjusting goodwill for impairment. Inventory Valuation Methods are First-in-Last-out (FIFO), Last-in-First out (LIFO) and Average Cost Method. These method are designed to calculate the cost of goods sold and cost of ending inventory. An explanation of the inventories valuation method are as follow: FIFO is assumed that items from the inventory are sold in the order
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1. Exercise 1-14 Homework- exercise 1-14 | Opportunity cost - Parrish Plumbing | Incremental revenue (52 x $2,500) | | $ 130,000 | Less Incremental costs per year | | | labor | | | | $ 36,400 | | parts | | | | $ 26,000 | | transportation | | | | $ 5,200 | | office stuff | | | | $ 10,400 | | | | | | | $ 78,000 | Incremental profit/ opportunity cost | | | | | $ 52
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included in their assets list and Kellog’s don’t do that. It is occurred because of the net loss carry over from the previous year. Kellog’s have Account receivable as the largest asset in 2010 i.e. 1190 million dollars while GMI in the same year has Inventories as its largest asset as 1344 million dollars. ------------------------------------------------------------------------------------------------------------------------------------------ Question 4 For Kellogg: The Company has 2915 million USD
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LECTURE 3: PREPARATION OF FINANCIAL STATEMENTS 1. (a) MMM Ltd Income Statement for the Year Ended 30 September 2013 £ £ Sales revenue 330,000 Less: Cost of sales Opening inventories 50,000 Purchases 200,000 Closing inventories (80,000) (170,000) Gross profit 160,000 Add: Other income Gain on disposal of equipment 1,000 Less: Operating expenses Sales commission 3
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staff ($223,000) iv. Sales staff time in securing the contract ($40,000) v. Cost saving due to new line ($0.019 per unit plus $138,000 per year) vi. Operating margin of 15%. vii. Working Capital: Reduction in average inventory age (by two days) Hint: Find out the current working capital needs in terms of sales days. What will be the net working capital each year? viii. Cost of Capital: Beta = 0.85; the spread of 2%; difference in market return
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