A company has $20 million in cost of goods sold and an inventoryturnover ratio of 2.0. If it can reduce its inventory and improve itsinventory turnover ratio to 2.5 with no loss in units sold and no changein cost of goods sold, by how much will FCF increase? ($2 million)

Q: A firm with annual sales of $7,600,000 increases its inventory turnover from 4.0 to 4.5. How much…

A: Inventory turnover is one of the efficiency ratio being used in business. This shows how many times…

Q: Use this problem to answer the following requirements: Mabuhay Corporation generated these gross…

A: Current year sales at 2019 prices = Current year sales / (1- decrease in sales price %) = P1,944,000…

Q: Company XYZ is currently making sales of $200,000. At this level, the variable expenses were…

A: Formula: Contribution margin = Sales value - variable expenses. Deduction of Variable expenses from…

Q: Williams & Sons last year reported sales of $25 million, cost of goods sold (COGS) of $20…

A: The objective of this question is to calculate the amount of cash that will be freed up by Williams…

Q: A company has international sales with 90 da erm. Their Inventory turnover period is 30 days. What…

A: The days sales in inventory is that accounting ratio which shows that how much time the…

Q: SJU Resources last year reported cost of goods sold of $35 million and an inventory turnover ratio…

A: Inventory turnover ratio means the cost of goods sold divided with average stock.

Q: Felt Ltd. is currently selling 2,000 units of a product per month at a price of €300 each. An…

A: The maximum profit under different scenario can be computed for reaching the management decisions…

Q: Saddie & Co.'s return on assets (ROA) for the current year was 6.23%. Which of the following is true…

A: Return on assets is the ratio between income and average assets. It is calculated by dividing…

Q: Benny Books sells first edition books. Benny purchases the boöks from His supplier book and sells…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Krating Corporation has the following ratios: A0*/S0 = 1.6; L0*/S0 = 0.4; Profit Margin = 0.10; and…

A: The approach of financial planning implies that the financial ratios of the company do not change…

Q: A firm is considering several policy changes to increase sales. It will increase the variety of…

A: Given: Increase in inventory=$11900Increase in average receivables =$68800Increase in sales=$819000…

Q: 1.1 If the Cost of Sales for Company x is 150000, the Gross Profit is250000 and the Sales is 400000…

A: The Gross Profit Margin is a financial metric used to assess a company's financial health and…

Q: REQUIRED Use the information given below to calculate each of the following independently: 3.1…

A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: Assume sales volume for the company is expected to shrink 7.65% while their average price per unit…

A: The problem is asking us to calculate the new percentage of sales that the cost of goods sold (COGS)…

Q: Use this problem to answer the following requirements: Mabuhay Corporation generated these gross…

A: Gross Profit is defined as the income arrived at by deducting the cost of goods sold.

Q: A firm is considering several policy changes to increase sales. It will increase the variety of…

A: Change in Cash conversion cycle =  Days of inventory outstanding + DSO - DPO   Days of inventory…

Q: A company wishes to improve efficiency and have 28 days in inventory. If COGS is forecasted as…

A: The average inventory amount can be found by using the inventory turnover ratio where the cost of…

Q: A firm is considering several policy changes to increase sales. It will increase the variety of…

A: The cash cycle consists of the inventory period plus the account receivable period minus the account…

Q: Your firm has overproduced a vehicle with a unit cost of $19,000. If inventory increased by 50,000…

A: Introduction:- The term inventory encompasses both the raw materials used in production and the…

Q: The firm's current ratio now is 2.1. The firm plans to acquire additional inventory to meet a surge…

A: We need to use current ratio formula to calculate new increase in inventory.Current ratio. = Current…

Q: If the sales this year amounted to P500,000, sales this year at last year's prices is P460,000, the…

A: Gross profit seems to be a firm's earnings benefit after the cost or expense required for the…

Q: Company XYZ is currently making sales of $200,000 . At this level , the variable expenses were…

A: Contribution margin  = sales - variable costs = $200000 - 40000 = $160000

Q: Arconic has $2,284 (million) worth of inventory and their COGS are $9,332 (million). The average…

A: Inventory can be defined as the goods or products that are kept in the store as stock for the…

Q: Williams & Sons last year reported sales of $73 million, cost of goods sold (COGS) of $60 million,…

A: The inventory turnover ratio has increased which shows that the company is selling the goods…

Q: The Barnsdale Corporation has the following ratios: A0*/S0 = 1.6; L0*/S0 = 0.4; profit margin =…

A: Additional Funds needed (AFN): A company may need to raise funds needed for expansion when its…

Q: A firm has annual sales of $100 million, $20 million of inventory, and $30 million of accounts…

A: The inventory turnover ratio is the number of times a company has sold and replenished its inventory…

Q: Sales of your company is $1 mil, your total assets are $600k, your purchase cost is half of your…

A: Return on assets(ROA)= It is calculated by dividing Net income to Total assets and expressed in…

Q: Increase (decrease) in gross margin due to change in units sold A. (P4,800) B. P6.000 D. P16,000 D.…

A: 2020 2021 change sales 80000 97200   selling price 8 8   units 10000 12000 2000…

Q: Calculate COGS

A: Given information, Sales = $178,000Gross margin = 51% or 0.51 Calculate the cost of goods sold as…

Q: Riley Co. has a DOL of 140% and a DFL of 113%. If sales decrease by 12%, what is the expected…

A: DOL measures the percentage change in operating income(EBIT) for a percentage change in sales. A…

Q: Williams & Sons last year reported sales of $9 million, cost of goods sold (COGS) of $6 million, and…

A: The question is related to Turnover Ratio. Inventory Turnover Ratio  is ratio indicates  how many…

Q: A company has current liabilities of $500 Million, and its current ratio is 2.0. If the firm’s quick…

A: Current assets is shown the assets of the company. It includes the Cash, Cash Equivalent, bills…

Q: Pharoah Corp's sales slumped badly in 2022. For the first time in its history, it operated at a…

A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is One of the Important Cost…

Q: Williams & Sons last year reported sales of $48 million, cost of goods sold (COGS) of $40 million,…

A: Cash freed up refers to the capital amount that should be left at the time of closing position and…

Q: cash conversion cycle.

A: The formula for Cash Conversion Cycle is:CCC=DIO+DSO−DPOWhere:DIO stands for Days Inventory…

Q: Samcor Limited manufactures tables. The following information was extracted from the budget for the…

A: Given that, Units produced and sold = 2,400 units  Fixed manufacturing overheads = R216,960 Sales…

Q: Quick Inc. has sales of $36,400,000, and the break-even point in sales dollars is $24,024,000.…

A: Margin of safety = Total sales - Break even sales = $36,400,000 - $24,024,000 = $12,376,000

Q: Please don't use Ai solution

A: Current ratio = current assets ÷ current liabilities=$2,223,000 ÷ $855,000=2.6 The company managers…