A firm is planning to increase its inventory turnover by 1.5 turns next year.  This year's inventory is $40M with revenues of $850M.  Revenues are expected to grow by 10% next year.  The firm's cost ratio (COGS as a percent of sales) is 40%, and is not expected to change in the near future.  Calculate the inventory figure that should be included in next year's plan.  Calculate using the cost of goods sold (COGS) formulation of inventory turnover and using year-end balances only.
133729
Accounting always gives me a headache.\n\nThis is probably wrong, but it seems like you could just calculate next year's revenue as 935M, so the COGS is 374M.\n\nThe current inventory turnover is 340M/40M = 8.5.\nThe future inventory turnover is going to be 10.\n\nHence, 10 = 374M / inventory(next year).\n\nInventory next year = 37.4M
428902
Let n be the amount of sales (in thousands) of best grade siding.\n\n$40k * 20% = $8k\n$50k * 30% = $15k\nn * 60% = 0.6n\n\nTotal profit will be 8 + 15 + 0.6n\nTotal sales will be 40 + 50 + n\n\nThe profit on the siding should equal 50% of the total sales.\n8 + 15 + 0.60n = 0.50 (40 + 50 + n)\n\nNow solve for n:\n\nSimplifying:\n23 + 0.6n = 45 + 0.5n\n\nSubtract 0.5n from both sides:\n23 + 0.1n = 45\n\nSubtract 23 from both sides:\n0.1n = 22\n\nMultiply both sides by 10:\nn = 220\n\nSo they must sell $220,000 of their 'best grade' siding to make a overall profit of 50%.\n\nHere's a double check:\n$40k * 20% = $8k\n$50k * 30% = $15k\n$220k * 60% = $132k\n\nTotal profit = 8 + 15 + 132 = 155\nTotal sales = 40 + 50 + 220 = 310\n\n155 / 310 = 0.5 = 50%\n\nSo the answer is they must sell $220,000 of best grade siding.
141339
Inventory - well just ask the accountant for a list of all purchases during the last two years, if they ask if you need it tomorrow, tell him or her that if you needed it tomorrow you would of asked for it tomorrow.\n\nThen count all the computers, monitors, and servers, printers, office desks, chairs, give a brief description of each and give them to the accountant to determine a replacement cost, and  a current market value... and again if they ask if you need it tomorrow, tell him or her that if you needed it tomorrow you would of asked for it tomorrow.\n\nIf anything goes wrong - blame it on the accountant...\n\nif you want any more advice on how to climb the ladder your going to have to send me money.
79185
Good question. My guess is inventory. You have to spend money to obtain it (cost of goods), and you "sell" it for a profit (fees).
675126
Offhand I would say that the model predicts demand in year N to be normally distributed with mean 5000 and standard deviation 1500 sqrt(N).  The model prediction of the probability of negative sales in year N increases towards 0.5 from below as N approaches positive infinity. :-)
524000
Average total cost has to be higher than price.\nVariable cost is undetermined ( since the component of fixed cost might be high and therefore although the variable cost is lower than price the firm might make a loss)\nMarginal cost is higher than price  ( i.e for every one more unit the firm produces it loses money, so MC > P )\n\nIn the long run, MC=AC=Price for long run\nLook at the graph in your book if you have one. The MC and AC intersection point is where a competitive firm will operate. Left of the intersection will increase price right of that will decrease price until MC=P=AC.
502835
(a) If marginal revenue is greater then the marginal cost, this signifies that variable costs for production of every subsequent unit are greater then additional revenue associated with it. Therefore, the company is either operating above the equilibrium point or is unable to reach it. As such, company should reduce the level of production to achieve the equilibrium point or stop producing at all. \n\nI would love to help you more on this assignment. If you need professional help - contact us at http://custom-writing.org/\nYour source for professionally written essays and A+ homework.
355349
market analysis should include these numbers:\ntotal number of students in ur college,\ntotal number of lockers in ur college,\ntotal number of used and unused lockers in ur college,\ntotal number of potential students that would rent $65 a month,\nthe price of the locker rentals per month,\nlist down the benefits of using ur storage warehouse.\netc\netc
612978
Okay, so you know there are 12 months in a year. And every year, her sales increases 15%. If you want to find out how much percent her sales increase every month, you just need to divide 15% by 12, which is: 1.25%. So, this means that her sales increase 1.25% every month. \n\nNow, in January her total is $186,000, what is 1.25% of that? \n$186,000/100= $1,860 \n$1,860*1.25= 2325\n\nSo this means that her sales for February will be $2325 more than her sales from January. Her total for February is $188,325\n\nTo find her total for March, you need to find 1.25% of her total from February, so that is 1.25% of $188,325. Find that out yourself.\n\nTo find her total for April, you need to find 1.25% of her total from March. And add it to that total. (from March)\n\nAnd so on. \n\nI think this is how you solve this.\n\nGood luck.
80520
You have to add in any expenses you have to the basis of the stock (what you paid for it). It does not matter what you make. If you pd 1$ per share and paid a broker .50 per share and when you sell it for 2$ per share your profit is only .50. I hope this helps. Also you report that on schedule D remember your expenses are added to the cost
493047
Revenue = Price x Quantity\nR = P*Q\n\nLet i be the increase in Price\nP = 40 + i\nQ = 5,000 - 100 * i\n\nR = (40 + i) * (5,000 - 100 * i)\n   = 200,000 + 5,000i - 4,000i -100i^2\n   = 200,000 + 1,000i - 100i^2\n\nDifferentiate R and set = 0 to find the maximum\n\ndR/di = 1,000 - 200i = 0\n 200i = 1,000\n      i = 5\n\nPlug this back in to the equation for Price = $40 + i\nP = 40 + 5 = $45\nQ = 5,000 - 100 *5 = 4,500\nR = P * Q = 45 * 4,500 = $202,500\n\nYou can calculate R at other prices ( try i = 4 and i = 6 ).  Then, you can verify that i = 5 is the MAX!\n\nThe important thing to learn is how to set-up the equations.  In this case we needed to create a new variable "i" in order to describe the price - quantity relationship.\n\nGood Luck\nm
176518
If there is demand, there will be supply. They work side by side. One cannot exist without the other. As one increases or decreases, so will the other. Not always at the same rate of increase or decrease. This rule determines cost of production & selling price. On a simple grid, using a X & Y axis; where they cross is the selling price.
401850
A rule of thumb for this type of business is 50 - 60% of annual sales plus inventory, or 1.5 times seller's discretionary earnings plus inventory.  Seller's discretionary earnings are the earnings of a business prior to income taxes, nonrecurring income and expenses, nonoperating income and expenses, depreciation and amortization, interest expense, and owner's total compensation for one owner/operator.
381045
Cost of goods sold is defined as the actual cost that is directly incurred by manufacturing the good.\n\nThus, take:\nIncoming inventory + cost of goods created - ending inventory. The Manufacturing overhead is indirect, and is thus not counted.\n\n165,700 + 689,200 - 194,100 = $660,800 (solution!)
164067
When you analyze a company, you should take the following into consideration:\n1.  Are their gross revenues going up or down faster than competition.\nIf it's going up, what is causing it?  Better marketing?  Territory expansion?  New products?  Better distribution system?\n2.  Are their gross margins going up or down and is there gross margin comparable to their competitors\nThis addresses the question whether this company is producing their products at the least cost possible - efficiently.\n3.  What is their market share?  Is it going up or down?\n4.  What does Wall Street think of the company.  \nIs the yield of their stocks (I think it's earnings per share divided by current selling price of their stock) higher than their competitors or lower or comparable.
162191
There are many, many point of sale programs out there that manage inventory for you. They give you an ideal inventory figured from your current inventory + purchases - sales. You can then take this ideal inventory and compare it to an actual physical count to find if you have any theft or waste. I suggest inventorying stock once a week. If there is theft or waste, you need to be able to pinpoint it to certain weeks.\n\nYou can also set the same system up in Microsoft Excel It requires a spreadsheet to track sales by item that also imports your cost of each item sold to create an ideal cost of goods sold. You can then have an inventory spreadsheet by which you count and value your existing inventory and purchase number to establish an actual cost of goods sold. By comparin the actual cost of goods sold to the ideal cost of goods sold, you get the same information the point of sale software gives you.\n\nI have spreadsheet systems that can be set up to track all this information and feed it into P&L spreadsheets along with labor numbers and purchase report numbers to create a preliminary P&L on a weekly basis to better manage your business. You can also find your needed gross profit per person (how much markup you need from every customer to pay your bills and profit) with the spreadsheet system.\n\nContact me through my website for more information.\n\nBrandon O'Dell\nO'Dell Consulting\nRestaurants/Retail/Bars\nhttp://www.bodellconsulting.com
594306
The two equations you are given are just two different ways to express the information.  The way this is set up assumes that the inventor will be able to sell every item that is produced, so both her production and sales are represented by "x".\n\nTo see that the two equations are really giving you the same information, notice that:\n\nSales - cost =profit.  Sales would be 4.00x.\n4.00x-(1.75x+7000)=2.25x-7000\n\nThe break even point is when your profit is zero, so you are neither losing nor gaining money.\nP(x)=0.  This point would be called the y-intercept if you were drawing a graph.\n\nAlso, if you look at your two equations, you can see that they are written in the form, y=mx+b, so you could graph the equation, and read the points off the graph, where:\n\n(a) x=2000\n(b) x=5000\n(c) the value of x when y=0.\n\nOr if you feel more comfortable with the algebra, just use your equations.\n\nThe best way is to find the answer by two different ways, and see if they agree.  For a quick check, you can just compare the answers and see if they make sense.\n\nJust by noticing that the slope is positive, you can already tell that the profit for 5000 units should be greater than for 2000 units.\n\nLittle ways to check your work are especially helpful during an exam.