Henderson Corporation is a supplier of alloy ball bearings to auto manufacturers in Detroit. Because of the specialized manufacturing process employed, considerable work-in-process and raw material inventories are created
The average inventory levels are $1,152,000 and $2,725,000, respectively. In addition, finished goods inventory is $3,225,000, and sales (at cost) for the current year are expected to be about $24 million. The inventory turnover that Henderson Corporation is currently expecting is:
A) less than 2.0.
B) greater than 2.0 but less than 2.5.
C) greater than 2.5 but less than 3.0.
D) greater than 3.0.
D
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Tastee Mart sells Frostee Flakes. Demand for Frostee Flakes is 500 boxes per week. Tastee Mart has a holding cost of 30 percent and incurs a fixed cost of $100 for each replenishment order it places for Frostee Flakes
Given that cost is $2 per box of Frostee Flakes, how much should Tastee Mart order in each replenishment lot? If a trade promotion lowers the price of Frostee Flakes to $1.80 for a month, how much should Tastee Mart order given the short-term price reduction? What will be an ideal response?
Which of the following statements correctly depicts duties of court appointed trustees?
a. Trustees identify and collect a debtor's assets and then allocate those assets to creditors in an orderly manner. b. Trustees review fee applications, motions to appoint trustees and examiners, motions to convert or dismiss a case, and other pleadings. c. Trustees investigate criminal complaince in bankruptcy cases. d. Trustees testify in bankruptcy cases.