Which of the following is calculated by dividing cost of goods sold by average inventory and then dividing this result into 365 days?
A. Days to sell ratio
B. Days to collect ratio
C. Inventory turnover
D. Current ratio
Answer: A
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A number of costs that are commonly allocated are listed in the following table followed by two alternative cost allocation bases.
Required: For each cost listed, circle the cost allocation base that you believe would be more appropriate for allocating the cost.
What will be an ideal response?
Fisher Company has been named as the defendant in a class action lawsuit. In addition, the company is located in a region that normally has an active hurricane season. Indicate whether each of the following statements is true or false. ________ a) If the likelihood of a future obligation is probable and can be reasonably estimated, a liability should be recognized on the balance sheet.________ b) If the outcome is probable, but cannot be reasonably estimated, the contingency should be disclosed in the notes to the financial statements.________ c) If the outcome is reasonably possible but not likely, the contingency should be disclosed in the notes to the financial statements.________ d) Every lawsuit, regardless how frivolous, should be disclosed in the notes to the financial
statements.________ e) Since it is located in a region for which an active hurricane season has been predicted, the company must disclose the contingent liability, which is the potential for catastrophic loss, in the notes to their financial statements. What will be an ideal response?
Napoli Industries had net income for Year 2 of $650,000. Napoli had an average number of shares outstanding at the end of the year of 500,000 shares. On January 1, Year 2, the market price of Napoli's stock was $20 per share. On December 31, Year 2, the market price was $22 per share. What is the price-earnings ratio for Napoli at the end of Year 2?
A. 16.9 B. 15.4 C. 16.2 D. None of these answer choices is correct
There is a 30% chance that any current client of company A will switch to company B this year. There is a 40% chance that any client of company B will switch to company A this year
If these probabilities are stable over the years, and if company A has 500 clients and company B has 300 clients, (a) how many clients will each company have next year? (b) how many clients will each company have in two years?