Which of the following statements is CORRECT?
A. Since accounts payable and accrued liabilities must eventually be paid off, as these accounts increase, AFN as calculated by the AFN equation must also increase.
B. Suppose a firm is operating its fixed assets at below 100% of capacity, but it has no excess current assets. Based on the AFN equation, its AFN will be larger than if it had been operating with excess capacity in both fixed and current assets.
C. If a firm retains all of its earnings, then it cannot require any additional funds to support sales growth.
D. Additional funds needed (AFN) are typically raised using a combination of notes payable, long-term debt, and common stock. Such funds are non-spontaneous in the sense that they require explicit financing decisions to obtain them.
E. If a firm has a positive free cash flow, then it must have either a zero or a negative AFN.
Answer: D
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Assume a beginning inventory as follows: 10 units @ $1.00, 100 units @ $0.90, and 10 units @ $1.10 . A purchase of 80 units @ $1.05 is made, and then a sale of 110 units is made. Using perpetual LIFO, what is the cost of inventory on hand after the sale?
a. $28.00 b. $95.00 c. $82.00 d. $59.00 e. $88.00
Which method would serve to reduce the information distortion in a supply chain consisting of a fabricator, manufacturer, supplier, and a retailer?
A) Make both the fabricator and retailer responsible for all decisions regarding product inventories at the retailer. B) Make the manufacturer responsible for all decisions regarding product inventories at the retailer. C) Make the supplier responsible for all decisions regarding product inventories at the retailer. D) Make the customer responsible for all decisions regarding product inventories at the retailer.
The upper and lower control limits for a component are 0.150 cm. and 0.120 cm., with a process target of .135 cm. The process standard deviation is 0.004 cm. and the process average is 0.138 cm. What is the process capability index?
A) 1.00 B) 1.25 C) 1.50 D) 1.75
The project described by:
Activity Immediate Predecessor Time (days) A -- 6 B A 2 C -- 8 D B, C 5 E D 7 has a critical path of length of A) 15 days. B) 20 days. C) 17 days. D) 18 days. E) None of the above