The inventory turnover for an industry is 6 (every two months) but Slow Corp. turns over its inventory 4 times a years (every three months). If annual sales are $1,000,000 and the interest cost to carry inventory is 12 percent, what is the potential savings in interest expense if the firm achieves the industry for the turnover of its inventory??
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The current level of inventory isInventory turnover: Sales/Average inventory1,000,000/X = 4X = $250,000.?The level of inventory implied by the industry average isInventory turnover: Sales/Average inventory1,000,000/X = 6X = $166,667.?The potential reduction in inventory:$250,000 - 166,667 = $83,333.?The potential savings in interest expense (if the firm can achieve the industry average for the turnover of its inventory): $83,888 x 0.12 = $10,000.
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Compute the weighted mean for the following data. xi Weight (wi) 9 10 8 12 5 4 3 5 2 3
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Which of the following statements regarding book-tax differences is true?
A. Corporations will eventually recognize the same amount of income for book and tax purposes for income-related temporary book-tax differences. B. Income excludable for tax purposes usually creates a temporary book-tax difference. C. Corporations are not required to report book-tax differences on their income tax returns. D. None of the choices are correct.
The accountant of Action Adventure Games prepared a balance sheet after every 10-day period. The only resources invested by the stockholder were at the start of the company on June 1. During June, the first month of operation, the following balance sheets were prepared:ACTION ADVENTURE GAMESBalance SheetJune 10Assets?Equity?Cash……………………..$60,000Common stock……………..$60,000Total assets………………$60,000Total liabilities and equity…$60,000ACTION ADVENTURE GAMESBalance SheetJune 20 Assets?Liabilities?Cash……………………. $48,000Notes payable……. $18,000Land……………………. 10,000Equity?Building…………………20,000Common stock…..60,000Total assets…………..$78,000Total liabilities and equity$78,000ACTION
ADVENTURE GAMESBalance SheetJune 30Assets?Liabilities?Cash……………………. $51,000Accounts payable….$2,000Office supplies…………2,000Notes payable……. 18,000Land……………………. 10,000Equity?Building…………………20,000Common stock…..60,000??Retained earnings3,000Total assets…………..$83,000Total liabilities and equity$83,000Required: Describe the nature of each of the four transactions that took place between the balance sheet dates shown. Assume only one transaction affected each account.June???10??20??30???? What will be an ideal response?
Identify and discuss ways to adapt a persuasive message for those from other cultures
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