Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Read each question carefully, make sure to answer all questions are answered and show your work 1. Use the following information to determine the implied

Read each question carefully, make sure to answer all questions are answered and show your work

1. Use the following information to determine the implied fixed inventory ordering cost:

EOQ = 83.67 units

Demand = 350 units

Holding Costs = $3

A. $0.36 B. $12.50 C. $25.00 D. $30.0

2. A firm has revenues of $8,000,000 and COGS = 50% of revenues. Receivables = $800,000, Inventory = $500,000, and Payables = $300,000. What is days inventory held?

A. 36.5 Days B. 45.6 Days C. 27.4 Days D. 54.7 Days

3. Use the following information to determine the implied inventory holding cost:

EOQ = 95 units

Demand = 350 units

Fixed Ordering Costs = $5

A. $0.39 B. $12.50 C. $2.58 D. $2.56

4. A credit analyst has received a $20,000 order from a new customer. The cost of filling the order (i.e., COGS) is $19,100 and collection costs are $500. The credit analyst notes that the COGS will be paid immediately. Further, it is assumed that the customer will repay the trade credit obligation in 90 days. It is also assumed that the collection costs will be incurred in 90 days. If the appropriate discount rate is 10%, what is the NPV of extending credit to the new customer?

A. $400.00 B. -$157.25 C. $69.25 D. -$69.25

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

An Introduction To Financial Markets A Quantitative Approach

Authors: Paolo Brandimarte

1st Edition

1118014774, 9781118014776

More Books

Students also viewed these Finance questions

Question

Identify the sources of administrative tax law.

Answered: 1 week ago

Question

plan and structure your literature review;

Answered: 1 week ago

Question

establish an effective note-taking and recording system;

Answered: 1 week ago

Question

identify what you need to read and where to find it;

Answered: 1 week ago