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Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 60,500

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Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 60,500 units per year, an ordering cost of $3 per order, and carrying costs of $1.20 per unit. a. What is the economic ordering quantity? Economic ordering quantity 570 units b. How many orders will be placed during the year? Number of orders 114 orders c. What will the average inventory be? Average inventory | 285 units d. What is the total cost of ordering and carrying inventory? Total cost 5 537 Thompson Wood Products has credit sales of $2.124,000 and accounts receivable of $354,000. Compute the value of the average collection period. (Use a 360-day year.) Average collection period 61 days Using the expectations hypothesis theory for the term structure of interest rates, determine the expected return for securities with maturities of two, three, and four years based on the following data (Input your answers as a percent rounded to 2 decimal places.) Interest Rate 1-year T-bill at beginning of year 1 1-year T-bill at beginning of year 2 1-year T-bill at beginning of year 3 1-year T-bill at beginning of year 4 Expected Return 6001% 2-year security 3-year security 4-year security 666 700/% Biochemical Corp. requires $650,000 in financing over the next three years. The firm can borrow the funds for three years at 12.60 percent interest per year. The CEO decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 925 percent interest in the first year, 13.50 percent interest in the second year, and 10.50 percent interest in the third year. Assume interest is paid in full at the end of each year. a. Determine the total interest cost under each plan. Long-term fixed-rate Short-term variable-rate Interest Cost is 87,750 60.125 s b. Which plan is less costly? Long-term fixed-rate plan

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