Which of the following line items in a balance sheet is considered the most for making a financing decision?
A) current assets
B) long-term liabilities
C) revenue
D) cost of goods sold
B
You might also like to view...
All of the following are indicators of financial statement fraud EXCEPT:
a. Companies with unrealistically large growth in assets, revenues or profits. b. Companies with a principal who has been involved in a bankruptcy. c. Companies whose success depends on a special tax loophole or tax avoidance scheme. d. Companies that report contingent liabilities that have the potential to create a loss.
Which of the following is not an aspect of using social activities and ceremonies in building strong organizational culture?
a. They emphasize intrinsic and extrinsic rewards. b. They could involve family and friends in these activities. c. They encourage group membership. d. They should never use monetary rewards.
What is the intent of the family purpose doctrine?
A) to impose liability on children for the care of elderly parents B) to impose liability on the owner of an automobile for the negligence of immediate family members operating the automobile C) to impose liability on a parent for any negligence caused by a child D) to impose strict liability on the owner of a wild animal for any injuries caused by the animal
An entrepreneur who operates a cellular phone store orders inventory of cell phones based on four internal memory specifications - 8 GB, 16 GB, 32 GB, and 64 GB. She wants to evaluate her inventory ordering policy for the phones with four different amounts of internal memory. Any phone unsold at the end of a period is kept in inventory for the next sales period and incurs a holding cost expressed as 10% of the cost per unit per period. If demand during a period exceeds supply for a phone, then the sale is lost. The data on the cost and selling prices of the cell phones categorized by these memory specifications are known, and representative data on the past sales are also available.
Internal Memory Cost ($)Selling Price ($)8 GB420 430 16 GB500 520 32 GB590 620 64 GB670 700 Past Sales: Period 8 GB 16 GB 32 GB 64 GB 1 276 274 327 332 2 302 211 264 329 3 299 276 306 239 4 261 258 232 277 5 260 244 278 220 6 306 252 262 252 7 227 213 290 253 8 228 217 308 250 9 205 215 246 277 10 236 237 272 284 11 279 251 301 282 12 303 271 271 282 13 266 252 276 317 14 263 306 285 310 15 210 250 328 253 16 247 230 317 340 17 314 285 289 332 18 283 304 312 256 19 283 245 294 272 20 252 237 262 323 a. Construct a spreadsheet simulation model to estimate the total profit the entrepreneur earns in a period when ordering 300 units of each cell phone. To model the respective cell phone demands, fit a realistic distribution to the sales data. What is the average total profit? What is the estimated likelihood that the entrepreneur makes less than $10,000 next period?b. Using Spearman rank correlation, compute the correlations between the demands for the cells phones based on the four memory specifications. Incorporate a correlation matrix to capture the interrelationships between the demands for each cell phone type. What is the average total profit? What is the estimated likelihood that the entrepreneur makes less than $10,000 next period? Comparing these answers to part (a), conclude how the correlated demand affects the model's implications. What will be an ideal response?