If a bank loan officer were considering a company's loan request, which of the following statements would be CORRECT, other things held constant?
A. The lower the company's inventory turnover ratio, the lower the interest rate the bank should charge.
B. The higher the days sales outstanding ratio, the lower the interest rate the bank should charge.
C. The lower the total debt to total capital ratio, the lower the interest rate the bank should charge.
D. The lower the company's TIE ratio, the lower the interest rate the bank should charge.
E. The lower the current ratio, the lower the interest rate the bank should charge.
Answer: C
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What will be an ideal response?
An equivalent unit of material is equal to:
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A manufacturer of industrial seafood processing equipment wants you to develop an aggregate plan for the four quarters of the upcoming year using the following data on demand and capacity
Quarter Units Regular Time Over- time Sub- contract Initial inventory Regular time cost 250 units $1.25/unit 1 200 400 80 100 Overtime cost $1.50/unit 2 750 400 80 100 Subcontracting cost 2.00/unit 3 1200 800 160 100 Carrying cost $0.50/unit/quarter 4 450 400 80 100 No back ordering is allowed a. Find the optimal plan using the transportation method. b. What is the cost of the plan? c. Does any regular time capacity go unused? How much in what periods? d. What capacity went unused in this solution? (List in detail.)