Answer: Cash cycle =24.35 days
Explanation:
Cash cycle=Days in inventory+Days in receivables-Days in payables
Days in inventory=365/inventory turnover
=365/18.9
= 19.3121693 days
Days in receivables=365/receivables turnover
=365/9.7
=37.628866days
Days in payables=365/payables turnover
=365/11.2
=32.5892857 days
Therefore, Cash cycle=Days in inventory+Days in receivables-Days in payables
= 19.3121693 days+ 37.628866 days - -32.5892857days
=24.3517496days
Rounded up to 24.35 days
The cash cycle of Franklin, Inc., considering its inventory turnover, receivables turnover, and payables turnover, is approximately 24.35 days.
In order to calculate the cash conversion cycle for Franklin, Inc., we need to consider three aspects: Inventory turnover, payables turnover, and receivables turnover.
Firstly, we need to convert these turnovers into days. That's achieved by dividing 365 by the turnover ratio for each component.
The converted days for each component will be:
The Cash Conversion Cycle is then computed as follows: Cash Conversion Cycle = Inventory Days + Receivables Days - Payables Days = 19.31 + 37.63 - 32.59 ≈ 24.35 days
So, the cash cycle of Franklin, Inc. is approximately 24.35 days.
Answer:
See explanation section.
Explanation:
Sage Hill Company
Journal entries
Requirement A.
March 2 Account receivable - Oriole Company debit $891,900
Sales revenue credit $891,900
Note: Assume that the company used gross method under a perpetual inventory system, during the sales, the company did not deduct the discount.
Cost of good sold Debit $527,400
Merchandise inventory Credit $527,400
Note: Under the perpetual inventory system, a seller has to record cost of good sold journal.
Requirement B & C.
B.
March 6 Sales Returns and Allowances Debit $114,400
Account Receivable Credit $114,400
Note: As the company did not calculate the cost of return goods, we did not give the cost of merchandise journal.
C.
March 12 Cash Debit $891,900
Sales Discounts Debit $26,757
Account Receivable Credit $891,900
Note: Calculation: (891,900-(891,900 × 3%) = (891,900 - 26,757) = $865,143.
As the company received the amount with in the discount period, the customer got the discount from the seller.
B. cannot reship them to the seller without the seller's instructions.
C. can resell them for the buyer's benefit.
D.can give reasonable time for the seller to reclaim the goods
Answer:
D
Explanation:
the buyer can give reasonable time for the seller to reclaim the goods and made a possible cure for the defective delivery.
Answer:
120
Explanation:
Data provided in the question:
Number of workdays in a year = 250
Demand, D = 7,500 units
Ordering costs, F = $25.00 per order
Carrying costs, C = $9.00
Lead time = 4 days
Now,
Reorder point = Lead Time in days × Average Daily Demand
also,
Average Daily Demand = Demand ÷ Number of workdays in a year
= 7500 ÷ 250
= 30
Thus,
Reorder point = 4 × 30
= 120
Answer:
It includes; Digging deeper into areas of knowledge/expertise and comparison of achievement can help foster,creat or lead to a competitive position/ advantage. Finding out, sourcing and making use of other areas or sources of knowledge and information can keep a company up to date of competitive efforts and leads to an environment for creativity, shows/ create new knowledge within the company thereby finally leading toexisting competitive advantages and going after new ones.Success is a product of failure so therefore, getting the knowledge of failure as part of the innovative process can bring good results.
Meeting goals with all flexibility and sharing of personal stories, sourcing outsiders, proving one’s self wrong will all foster a kind of fear-free searching of new ideas.
Explanation:
For firm generally, crafting, creating or bringing a strategy that gives/yields a competitive advantage over rivals is said to be the most reliable means of achieving above-average profitability and financial performance in any organization. A company can attain and have sustainable competitive advantage if and when the elements of the strategy used by the company give buyers lasting and good impression orreasons to prefer a company's products or services over those of their competitors.
Strategic approaches used by company to build a competitive advantage includes; Focusing on a narrow market environment (niche) within an industry and also creating an advantage based on offering more value for the money e.t.c.
b. You cannot inventory service checked.
c. Employees do not require any technical training unanswered.
d. The service itself cannot be patented checked.
e. The process is part of the product
Answer:
The correct answers are letters "A", "B", "D" and "E".
Explanation:
A service system is a combination of Information Technology (IT) technologies and corporate networks that provide services to customers. Service systems have added values that differentiates and include the efforts of people in the operations. Online education programs are examples of service systems.
Manufacturing systems are the traditional organizations in which a product is created with the use of materials, labor, managerial support, and equipment to produce goods in organized and established cycles aiming to offer a product that satisfies consumers' needs.
Compared to manufacturing systems, service systems are intangible because even if people can make use of them, they are not physic; they cannot be inventoried since there is no specific form of measuring service systems by units; they cannot be patented because most service systems add value to already existing services with the use of technology; and, the process of providing the service is the product itself.
Service systems differ from manufacturing systems in several ways, particularly in that services can't be inventoried, they usually can't be patented, and the process of service delivery is often considered part of the product itself. Hence the correct option is (b, d).
Significant ways in which service systems differ from manufacturing systems include the fact that you cannot inventory service and the service itself cannot usually be patented. These characteristics highlight major differences between services and physical products.
In addition, the process of delivering the service is often considered part of the product in a service system. For instance, customer experience is integral to services delivery, unlike in manufacturing where the product and its manufacturing process are usually distinct.
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Activities not on the critical path cannot become critical after crashing.
Crashing shortens the project duration by assigning more resources to one or more of the critical tasks.
Crashing a project often reduces the time it takes for lengthy or complex, but noncritical activities.
Answer:
The correct answer is letter "A": Crashing is not possible unless there are multiple critical paths.
Explanation:
Project crashing is a technique used to reduce the duration of a project to the least amount of extra cost by decreasing one or more critical activities. All of this is usually arranged in multiple entry charts where each critical activity receives the name of "critical path". It is imperative to have several critical paths so the crashing can be the most effective possible.