Indicate whether each of the following statements is true or false.________ a) Other things being equal, an operating cycle of 49 days is more desirable than an operating cycle of 120 days.________ b) The operating cycle is longer for a winery than a fast-food restaurant.________ c) The length of an operating cycle is not relevant to the profitability of a business.________ d) The length of an operating cycle equals the average days to collect accounts receivable.________ e) The length of an operating cycle is computed by adding the sum of the average days in inventory and the average number of days to collect accounts receivable.
What will be an ideal response?
a) T b) T c) F d) F e) T
a) This is true, if all other things are equal.
b) This is true. It takes a very long time to produce wine, so a winery would have a long operating cycle.
c) This is false. The faster a company is able to turn over its inventory and accounts receivable, the more profitable it will be.
d) This is false. The operating cycle is the average time it takes a business to convert inventory to accounts receivable plus the time it takes to convert accounts receivable into cash.
e) This is true. The operating cycle is the sum of average days in inventory plus average days in accounts receivable.
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Exhibit 11-03 ? ? On January 1, 2016, Wheeler, Inc purchased some equipment for $3,900. The equipment had an estimated life of five years and an expected residual value of $200. On July, 1, 2018, the equipment was sold for $1,000. Wheeler uses straight-line depreciation. Refer to Exhibit 11-03, what was the balance in the accumulated depreciation account prior to bringing the depreciation
expense up to date before the disposal? A) $1,480 B) $1,850 C) $1,050 D) $3,700
These are designed intentionally, in advance, and follow a set of rules or standards; they are used by judges, labor arbitrators, divorce mediators, referees, and group facilitators.
A. process consultation B. formal interventions C. adversarial interventions D. informal interventions
Based on the following cost data, items labeled (a) and (b) in the table below are which of the following amounts, respectively? Number of units: 1,500 3,000 Total cost: Variable$7,500 $15,000 Fixed$6,000 $6,000 Cost per unit: Variable$5 (a) Fixed$4 (b)
A. (a) = $5.00; (b) = $4.00 B. (a) = $3.00; (b) = $3.00 C. (a) = $2.50; (b) = $2.00 D. (a) = $5.00; (b) = $2.00
No conflict will exist between the NPV and IRR methods, when used to evaluate two equally risky but mutually exclusive projects, if the projects' cost of capital exceeds the rate at which the projects' NPV profiles cross.
Answer the following statement true (T) or false (F)