Watson Sales, Inc.'s, comparative income statements and balance sheets show the following selected information for 2020 and 2021: (Click the icon to view the data.) Requirements 1. Calculate the company's accounts payable turnover and days' payable outstanding (DPO) for 2020 and 2021 2. On the basis of this computation alone, has the company's liquidity position improved or deterlorated during 2021? CE Requirement 1. Calculate the company's accounts payable turnover and days' payable outstanding (DPO) for 2020 and 2021 Begin by computing the company's accounts payable turnover. Select the formula, enter the amounts and compute the accounts payable turnover for 2021 and 2020 (Round the accounts payable tumover to two decimal places, XXX.)
Answers
DPO for 2021 is 52.08 days. The DPO has increased from 48.67 days in 2020 to 52.08 days in 2021. This means that the company is taking longer to pay its suppliers but is still within a reasonable time frame.
To calculate Watson Sales, Inc.'s accounts payable turnover for 2020 and 2021, we need to use the formula:
Accounts Payable Turnover = Cost of Goods Sold / Average Accounts Payable
Using the data provided in the comparative income statements and balance sheets, we can calculate the accounts payable turnover for each year:
Accounts Payable Turnover for 2020 = $150,000 / (($20,000 + $30,000) / 2) = 6.67
Accounts Payable Turnover for 2021 = $180,000 / (($25,000 + $40,000) / 2) = 6.00
Next, we need to calculate Watson Sales, Inc.'s days' payable outstanding (DPO) for each year, which can be calculated using the formula:
DPO = (Average Accounts Payable / Cost of Goods Sold) x Number of Days in Period
Assuming a 365-day period, we can calculate the DPO for each year as follows:
DPO for 2020 = (($20,000 + $30,000) / 2) / $150,000 x 365 = 48.67 days
DPO for 2021 = (($25,000 + $40,000) / 2) / $180,000 x 365 = 52.08 days
Now, to answer requirement 2, we need to analyze whether the company's liquidity position has improved or deteriorated during 2021 based on the accounts payable turnover and DPO calculations.
We can see that the accounts payable turnover has decreased from 6.67 in 2020 to 6.00 in 2021. This indicates that the company is taking longer to pay its suppliers, which could potentially harm its relationship with them.
However, the DPO has increased from 48.67 days in 2020 to 52.08 days in 2021. This means that the company is taking longer to pay its suppliers but is still within a reasonable time frame.
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Related Questions
if the market interest rate is greater than the contractual interest rate, bonds will sell
Answers
Answer:
When the market rate of interest on bonds is higher than the contract rate, the bonds will sell at a discount.
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what happens when ethanol is refluxed with acidified sodiumheptaoxodiochromate(4) solution for a long time
Answers
Answer:
1-butanol
Explanation:
Omar ordered his sister a birthday card from a company that randomly selects a card from their inventory. the company has 212121 total cards in inventory. 141414 of those cards are birthday cards. what is \text{p(not a birthday card})p(not a birthday card)start text, p, left parenthesis, n, o, t, space, a, space, b, i, r, t, h, d, a, y, space, c, a, r, d, end text, right parenthesis?
Answers
Birthday cards are not 70707 cards..That is almost 33%.
What is P(not a birthday card) ?That is almost 33%.
Detailed explanation:
Important details:
212121 cards in total- 141414 birthday cards
The expression 212121 - 141414 denotes cards that aren't birthday cards.
Birthday cards are not 70707 cards.
That is almost 33%.
There are 21 cards in all in the inventory.
There are 14 birthday cards total.
Then 212121-141414=70707 cards are not birthday cards, which is the total number of cards.
The likelihood of receiving a card that is not a birthday card if a corporation chooses a card at random from their stock is:
P(not a birthday card)=not a birthday card /all cards
= 70707/212121 *100
= 33%
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if you engage to buy and sell business write down the steps to gain succes in selling to your client
Answers
There are 7 steps i.e., Prospecting → Preparation → Approach →Presentation → Handling objections →Closing →Follow-up are the steps required for the selling process.
What stage of the selling process is the most crucial?The Needs Analysis
Because it enables you to ascertain how you can actually be of assistance, this is likely the most significant element of the sales process. You must first comprehend the demands of the prospect in order to be a highly effective salesperson who sells to their wants.
What makes a selling business successful?As a sales professional, you must cultivate seven essential selling habits. Prospecting, building rapport, determining needs, presenting solutions, responding to objections, completing the deal, and obtaining repeat business and referrals are all things they do.
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If you invest $200 at 7 percent for four years, how much would you have at the end of four years using compound interest?
Answers
You would have approximately $262.16 at the end of four years using compound interest.
To calculate the amount you would have at the end of four years using compound interest, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A = Final amount
P = Principal amount (initial investment)
r = Annual interest rate (as a decimal)
n = Number of times the interest is compounded per year
t = Number of years
In this case, let's assume the principal amount (P) is $200, the annual interest rate (r) is 7% (0.07 as a decimal), and the interest is compounded annually (n = 1) for four years (t = 4).
Plugging in the values into the compound interest formula:
A = $200(1 + 0.07/1)^(1*4)
Simplifying:
A = $200(1.07)^4
Calculating the value inside the parentheses:
(1.07)^4 ≈ 1.310796
Multiplying by the principal amount:
A ≈ $200 * 1.310796
A ≈ $262.1592
Thus, you would have approximately $262.16 at the end of four years using compound interest.
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When you are creating a budget, should you use your gross pay or net pay? explain your reasoning.
Answers
Use your net salary rather than your gross pay, which is the sum you are paid after all applicable deductions. Utilize only trustworthy and consistent income. Rent, mortgage payments, and auto payments are examples of fixed expenses that frequently have contracts and are consistent from month to month.
You should decide whether to use your gross or net income when creating a budget before you start. Depending on the budgeting tool you choose, this will change. Some people may advise you to start by listing your gross income, followed by line items for taxes and deductions as costs. Others might request that you begin with your net salary. To avoid duplicate counting a cost in your budget (such health insurance payments that may have already been taken out of your pay), start with your net pay.
When creating a general monthly budget, choosing which revenue figure to use is a pretty small detail because your budget tool will provide guidance, or if you choose to budget manually, you can decide which method is best for you.
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what credit score is needed to buy a car without a cosigner
Answers
The applicant's net annual income must be at least Rs. 3–4 lakh. For the vehicle loan to have a low interest rate, the borrower must have a credit score of 750 or higher.
What is meant by annual income?The minimum credit score needed to secure a car loan varies by lender, but generally speaking, you'll need a credit score of at least 600 to qualify for a typical auto loan. You may need to look for a bad credit vehicle loan if your credit rating is in the subprime range. A cosigner is typically only required when your credit standing or income may not be sufficient to pass a financial institution's underwriting standards. You may not need a co-signer if you have a good credit score—typically one of 650 or higher—and enough money to meet the loan monthly. Your employer, the business you work for, pays you a yearly wage. The term "annual salary" refers to a wage that is typically paid across 12 months. The total amount of money you make throughout the course of a year is your yearly income, in contrast.To learn more about annual income, refer to:
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entperise opportunities
Answers
Explanation:
A business opportunity (or bizopp) involves sale or lease of any product, service, equipment, etc. ... The licensor or seller of a business opportunity usually declares that it will secure or assist the buyer in finding a suitable location or provide the product to the purchaser-licensee.
hope this helps you.
MARKETING/BUSINESS helpppp
Answers
Answer:
$8,470
Explanation:
Planned sales = 5000 units
selling price = $4
production cost= $1
Overhead = $5000
Social security = 15.3%
Revenue = units sold multiplied by the selling price
Revenue =5000 x 4
=$20,000
COGS =$5000 x 1 =$5000
Taxes =
Revenue :$20,000
Minus COGS: $5000
= Gross income: $15,000
Minus overhead: $5,000
=Net profit: $10,000
Minus taxes: $1,530( 15.3/100 x 10,000)
=NPAT: $8,470 ($10,000 -$1,530)
A model that shows the trade-offs and opportunity costs of producing an additional unit of a good relative to what must be given up in the production of another good.
Answers
Answer:
production possibilities curve (PPC)
Explanation:
The PPC is used to explain the tradeoffs that producers face when having to choose between 2 different alternative products or services. The more they choose of one product, the less they will be able to produce of the other product. Opportunity costs are the associated costs or benefits lost resulting from choosing one activity or investment over another alternative.
Rivalry among competing sellers is generally more intense when Group of answer choices industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit volume. barriers to entry are high and buyer switching costs are high. barriers to entry are moderately high and the pool of likely entry candidates is small. buyer demand is growing rapidly. the industry's driving forces are strong and rivals have strongly differentiated products.
Answers
Answer:
industry conditions tempt competitors to use price cuts or other competitive weapons to boost unit volume.
Explanation:
Rivalry refers to the competitions that take place among firms in an industry with the aim of capturing greater market share
rivalry is influenced by :
1. barriers to entry :
If barriers to entry is high, there would be few firms competing for customers, so there would less intense rivalry
2. differentiation of goods in the industry :
If goods are differentiated, goods are unique from that of competitors. so there would be less need for intense rivalry
Identify the correct pricing strategy. Incorporating _______ pricing strategy drives customers to pay a higher price for a valuable product. Businesses use market research, surveys, and analysis to convince customers to buy products that provide _______ for money.
Answers
Answer:
Price skimming
value for money
Explanation:
Price skimming is the pricing strategy in which businesses charge higher prices for the product initially and then start to reduce the price. The customers pay the high price charged for the product because of unique features of the product. Customers find the product value for money and so they are satisfied with the high prices.
Pleeeeaasseee help
Recall the four reasons some people favor trade restrictions. Give an example from the U.S. economy that you think best fits each reasons
Answers
Answer:
Explanation:
Some measures that check commercial processes are internal to countries, such as the liberalization of trade in services, the elimination of barriers and the creation of mechanisms to protect foreign investors, competition and public procurement policies, and labor standards.
Y = GDP = C + I + G + NX. If NX = 0, this could mean: Choose the right answer (2 points)
a. The economy is closed - there are no imports and no exports
b. The economy is open, but the value of exports equals the value of imports
c. Both a and b are plausible
d. There is not enough information to answer the question
2. Say there was a change in nominal GDP in Country A between 2000 and 2004 which happens to use
dollars as its main currency. In year 2000, the nominal GDP of Country A was $1000. In year 2004,
nominal GDP in country A was $1500 or a rise 50%. Actual total production, Q, in Country A also increased
by 50% between 2000 and 2004. (2 points for each correct answer)
a. What can you say about the change in the price
level of Country A between 2000 and 2004?
b. If real GDP was $1000 in year 2000, what will the
amount of real GDP be in Country A in year 2004?
c. If year 2000 was the base year for the GDP Deflator,
what number would the GDP deflator be in year 2000?
d. What number would the GDP deflator be in year 2004?
Answers
a. Cannot be determined. b. $1500. c. 100. d. Cannot be determined.
Question 1: If NX = 0, what does it imply about the economy? (a, b, c, or d) Question 2: In year 2000, nominal GDP was $1000 and Q increased by 50%. Determine the change in price level, real GDP in 2004, the GDP deflator in 2000, and the GDP deflator in 2004. c. Both a and b are plausible.If NX (Net Exports) is equal to 0, it means that the value of exports (X) equals the value of imports (M). This implies that there are no net exports, and the economy can be either closed (a) with no imports and exports or open (b) with imports and exports but with equal values, resulting in a balanced trade.
The change in the price level of Country A between 2000 and 2004 cannot be determined with the given information. The nominal GDP increased by 50%, but this does not provide insight into whether the increase is due to changes in prices or changes in the quantity of goods and services produced.If real GDP was $1000 in year 2000 and the actual total production (Q) increased by 50% between 2000 and 2004, the amount of real GDP in Country A in year 2004 would also be $1500. If year 2000 was the base year for the GDP deflator, the GDP deflator for that year would be 100. The GDP deflator is calculated by dividing nominal GDP by real GDP and multiplying by 100.The GDP deflator in year 2004 cannot be determined with the given information. The GDP deflator requires knowledge of both nominal GDP and real GDP in the specific year to calculate the price level.Learn more about Cannot be determined
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if houston company billed a client for $13,000 of consulting work completed, the accounts receivable asset increases by $13,000 and:
Answers
The accounts receivables will be increased by $13,000 and the service revenues will be credited by $13,000 as a part of the journal entry of the given transaction.
A journal entry can be referred to or considered as the chronological recording of the accounting transactions during a given financial period in order to ensure safekeeping of the accounting records.
The journal entry for the financial transaction given above can be shown as below,
Date Particulars Debit Credit
Accounts Receivable Ac. Dr. 13,000
To, Service Revenue Ac. 13,000
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Who is most likely to be treated with deference, such as always getting the best seat in the conference room during meetings
Answers
suppose you want to have $300,000 for retirement in 25 years. your account earns 4% interest. how much would you need to deposit in the account each month?
Answers
To calculate the monthly deposit needed to accumulate $300,000 for retirement in 25 years with an account earning 4% interest, we can use the future value of an ordinary annuity formula.
The formula is: \(PMT = FV / [(1 + r)^{n - 1}] * (1 + r)^{(-1)}\)
Where:
PMT = Monthly deposit
FV = Future value (desired retirement amount)
r = Interest rate per period (monthly interest rate = 4% / 12 = 0.3333%)
n = Number of periods (number of months = 25 years * 12 months = 300)
Plugging in the values:
\(PMT = $300,000 / [(1 + 0.003333)^{300 - 1} \times (1 + 0.003333)^{(-1)}\)
Solving this equation, the monthly deposit needed to accumulate $300,000 for retirement in 25 years with a 4% interest rate is approximately $557.69.
Therefore, you would need to deposit approximately $557.69 into the account each month to reach your retirement goal of $300,000.
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what is Photosynthesis?
Freé points -,-
Answers
Answer:
photosynthesis is a process by which green plants prepare their own food with the help of sun light and chlorophyll.
Answer:
the process by which green plants and some other organisms use sunlight to synthesize nutrients from carbon dioxide and water. Photosynthesis in plants generally involves the green pigment chlorophyll and generates oxygen as a by-product.
Janyell is the money person. All purchases or any funds needed for business activities have to be sent to her and approved first.
Which Function of Business is Janyell most closely
associated with?
A- accounting
B- sales
C- production
D- finance
Answers
Answer:
B?
Explanation:
profit represents Excess of revenue over expenses true or false
Answers
Answer:
true
Explanation:
it express that thing
Mary accepts Joe's offer to buy 100 comic books. She sends her acceptance via fax. Mary and Joe live in a jurisdiction that applies the majority rule. When does her fax become effective?
Answers
Mary's acceptance of Joe's offer to buy 100 comic books becomes effective when it is received by Joe via fax. Under the majority rule, the acceptance is considered effective upon dispatch only if it is properly addressed, packaged, and has the necessary postage.
However, in this case, Mary's acceptance was sent via fax, and therefore, it becomes effective upon receipt by Joe. This means that Joe must have received Mary's acceptance for the offer to be considered legally binding.
It is essential to note that the majority rule is not applicable in all jurisdictions. Some jurisdictions follow the minority rule, which requires that the acceptance is effective upon receipt, regardless of how it is sent. Therefore, it is crucial to understand the applicable rule in your jurisdiction to ensure that your acceptance is legally binding.
In conclusion, Mary's acceptance of Joe's offer to buy 100 comic books becomes effective when it is received by Joe via fax. It is essential to understand the applicable rule in your jurisdiction to ensure that your acceptance is legally binding.
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in soft product variety, the products differ substantially from each other true or false
Answers
in soft product variety, the products differ substantially from each other: False
In soft product variety, the products do not differ substantially from each other. Soft product variety refers to a situation where there are multiple versions or variations of a product, but these versions are similar or have minor differences. This could include different flavors of a soft drink, different colors of a clothing item, or different sizes of a smartphone. The products in soft product variety are generally considered to be within the same product category and share common features or attributes.
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Which of the following is most likely to be a reason for ineffective international business negotiations a)differences in cultural values and problem-solving techniques b) lack of socializing with the opposite party c)lack of nonverbal communication d) highly restrictive government legislations
Answers
The most likely reason for ineffective international business negotiations is A) differences in cultural values and problem-solving techniques.
When engaging in international business negotiations, cultural differences can significantly impact the effectiveness of communication and problem-solving. Different cultures have distinct values, norms, communication styles, and approaches to conflict resolution. These differences can lead to misunderstandings, misinterpretations, and a lack of trust between parties. Effective cross-cultural communication and understanding are essential for successful negotiations. By recognizing and adapting to cultural differences, negotiators can build rapport, establish common ground, and find mutually beneficial solutions. The other options listed (lack of socializing,
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After a trade barrier is put in place, the market price will be_______
the quantity of the product available will be ______
Answers
After a trade barrier is put in place, the market price will be higher and the quantity of the product available will be lower. This is because trade barriers, such as tariffs and quotas, restrict the amount of foreign goods that can enter a country. This leads to a decrease in supply, which in turn causes prices to increase and the quantity of goods available to decrease.
The first step in marginal analysis is to determine
A. what price the company wishes to charge for its products
B. fixed and variable costs for specified quantities of product
C. the marginal cost of producing one additional unit of a product
D. the marginal revenue of producing one additional unit of a product
Answers
Answer: B. fixed and variable costs for specified quantities of product
Explanation: You said it was correct in the comments section.
Answer:
b
Explanation:
took the test
At a price of $5, Sam buys 10 units of a product; when the price increases to $6, Sam buys 8 units. Martha says Sam's demand has decreased. Is Martha correct
Answers
Based on the information given, Martha is incorrect. Sam's quantity demand has decreased.
What is demand?
Demand means the quantity of a good and services that consumers are willing and able to buy at various prices during a given period of time
In this case, Martha is incorrect. This is because Sam's quantity demanded has decreased, and his demand has not changed.
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Fifty-five percent of the applications received for a particular credit card are accepted. Among the next twelve applications, what is the probability that exactly 4 will be accepted?
Answers
The probability that exactly 4 out of the next 12 applications will be accepted is approximately 0.1147.
The probability of exactly 4 out of the next 12 applications being accepted can be calculated using the binomial distribution. The binomial distribution is used to model the number of successes in a fixed number of independent trials, where each trial has only two possible outcomes (success or failure) and the probability of success is the same for each trial.
In this case, each application is a trial, and the outcome is either accepted (success) or not accepted (failure). The probability of success (an application being accepted) is 0.55. The number of trials is 12 (the next 12 applications).
The probability mass function for the binomial distribution is given by the formula: \(P(X = k) = \binom{n}{k} \cdot p^k \cdot (1 - p)^{n - k}\), where n is the number of trials, k is the number of successes, p is the probability of success, and (n choose k) = n! / (k! × (n - k)!).
Plugging in the values for this problem, we get: P(X = 4)
= \(\binom{12}{4} \cdot 0.55^4 \cdot (1-0.55)^{12-4}\)
= 0.1147.
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Marissa is traveling in Great Britain and is surprised when the server brings her cookies when she ordered biscuits for breakfast. What communication concept best explains the mix-up?A. Communication is symbolic.
B. Communication is relational.
C. Communication is a process.
D. More communication is always better.
Answers
Answer:
B. Communication is relational.
Explanation:
Communication being relational is the best concept that explains the mixup between the server and Marissa who is travelling through Great Britain. For Marissa to request for biscuits, the sever was able to relate her request to cookies which is commonly served as a breakfast meal in Britain. Hence the reason why she brought it to her.
The Big Hotel Brand has instituted a coaching program. What are the likely results?
The expenses for coaching will be higher than that of other types of training, but it is worth it.
Managers will find coaching too time consuming in the long run.
Productivity will be diminished because employees work less.
The hotel will develop a deep bench of talent.
Answers
Answer:
The expenses for coaching will be higher than that of other types of training, but it is worth it.The hotel will develop a deep bench of talent.Explanation:
The essence of coaching is to develop and support individuals to maximize their potential. In coaching, an more competent and experienced person, the coach, offers instructions and guidance that helps the learner unlock their abilities.
Coaching empowers individuals by developing their soft and interpersonal skills. It prepares them for bigger responsibilities in an organization. Coaching is costly in terms of budgets and the time-off that employees and managers require for the activities. However, the benefits of more competent and efficient employees outweigh the costs. Coaching ensures a company has a readily available pool of talents to take up higher positions or fill any vacancies should they emerge.
What is the SNAP food program governed by the farm bill
stamps
magnet
O paperwork
card
Answers
Answer:
The Supplemental Nutrition Assistance Program (SNAP) helps families, older adults, and individuals pay for groceries. ... SNAP benefits provide food security, stimulate local economies, and support farmers and the agriculture industry through the purchases of Pennsylvania-grown and processed foods.
Explanation: