A car manufacturer requires tires. Inventory consumption is constant at 600 tires per day. Lead time is normally distributed with a mean of four days and a standard deviation of one day. If the manufacturer wishes to avoid a stockout with probability P(z < +2.00), what should the reorder point be?

Conveyor 1 is less costly than Conveyer 2 and to determine which alternative is less costly, we need to calculate the after-tax annual worth (AW) of each conveyor.

For Conveyor 1:
- Initial cost = $75,000
- Salvage value after 16 years = $2,500
- Annual O&M cost = $21,500
- MACRS-GDS depreciation = 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, 8.92%, 8.93% for years 1-7, respectively

- Depreciation tax shield = (0.4)(14.29%)(75,000) + (0.4)(24.49%)(75,000) + (0.4)(17.49%)(75,000) + (0.4)(12.49%)(75,000) + (0.4)(8.93%)(75,000) + (0.4)(8.92%)(75,000) + (0.4)(8.93%)(75,000) = $19,495

- After-tax salvage value = (2,500 - 75,000)(0.6) + 75,000 = $43,000
- Present worth of cash flows = -75,000 + 19,495(P/A,9%,7) + 21,500(P/A,9%,16) + 43,000(P/F,9%,16) = $7,992.11
- AW = $7,992.11/[(P/A,9%,16)] = $1,064.25

For Conveyor 2:
- Initial cost = $120,000
- Salvage value after 16 years = $2,000
- Annual O&M cost = $12,000
- MACRS-GDS depreciation = 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, 8.92%, 8.93% for years 1-7, respectively

- Depreciation tax shield = (0.4)(14.29%)(120,000) + (0.4)(24.49%)(120,000) + (0.4)(17.49%)(120,000) + (0.4)(12.49%)(120,000) + (0.4)(8.93%)(120,000) + (0.4)(8.92%)(120,000) + (0.4)(8.93%)(120,000) = $31,194

- After-tax salvage value = (2,000 - 120,000)(0.6) + 120,000 = $74,000
- Present worth of cash flows = -120,000 + 31,194(P/A,9%,7) + 12,000(P/A,9%,16) + 74,000(P/F,9%,16) = $8,640.36
- AW = $8,640.36/[(P/A,9%,16)] = $1,148.52

Therefore, based on the comparison of after-tax annual worth, Conveyor 1 is less costly with an AW of $1,064.25, compared to Conveyor 2 with an AW of $1,148.52.

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If the company currently earns $5.20 per share and pays annual dividend payments that total $3.00 a share each year the dividend payout for walmart is 57.69%

The dividend payout ratio is the proportion of earnings that a company distributes as dividends to its shareholders. It can be calculated as follows:

Dividend payout ratio = Annual dividends per share / Earnings per share

In this case, we are given that Walmart earns $5.20 per share and pays annual dividends of $3.00 per share. Therefore:

Dividend payout ratio = $3.00 / $5.20 = 0.5769 or 57.69%

This means that Walmart distributes 57.69% of its earnings as dividends to its shareholders.

To answer the question, we just need to provide the dividend payout as a percentage rounded to two decimal places, which is 57.69%.

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The cost function that best represents the costs of producing the heaters is C(x) = 30x + 10x + 75x + 60,000, where, C(x) = total cost and x = number of units produced.

The first three terms represent the direct costs of producing each heater, which are the cost of the compressor, the sheet molded compound frame, and the assembly cost. Since these costs are directly proportional to the number of units produced, we can multiply each cost by the number of units produced (x) to get the total direct cost.

The last term represents the factory machines and tools cost, which is a fixed cost that does not vary with the number of units produced. Therefore, we can simply add this cost to the total direct cost to get the total cost function.

The cost function that best represents the costs of producing the heaters is a linear function that includes both fixed and variable costs. The fixed cost consists of the factory machines and tools cost, while the variable cost includes the direct costs of producing each unit.

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The Administrative Adjudication of Road Traffic Offences Act (AARTO) Act 46 of 1998 is an electronic record of road infringements at the roadside.

This allows for a streamlined and efficient process that ensures that offenders are held accountable for their actions while also promoting road safety.

The Administrative Adjudication of Road Traffic Offences Act (AARTO) Act 46 of 1998 is a South African law that regulates the manner in which road traffic offenses are managed, adjudicated, and punished in South Africa. The law establishes an administrative system for the adjudication of traffic fines, with the ultimate goal of enhancing road safety through more efficient and effective enforcement of traffic laws.

The electronic recording of infringements at the roadside as envisaged in terms of the Administrative Adjudication of Road Traffic Offences Act 46 of 1998 involves the use of electronic devices such as cameras and handheld devices that allow for the capturing of images and data related to traffic infringements. This data is then transmitted to a central database, which is used to manage the adjudication process. The use of electronic recording devices makes it easier to capture evidence of traffic infringements, which is critical for the effective adjudication of traffic offenses. The process also minimizes the chances of disputes and challenges to fines, as all evidence can be presented electronically, reducing the need for lengthy and costly legal proceedings.

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The characteristic of a prepaid group practice in the early 20th century was that physicians were paid a flat fee per person regardless of services rendered. So, correct option is B.

This means that a patient would pay a fixed amount for healthcare services, and the physician would provide all necessary medical care within that fee.

Prepaid group practices were a precursor to health maintenance organizations (HMOs) and were designed to provide affordable healthcare to working-class families who could not afford traditional fee-for-service medical care.

This system was established by the Ross-Loos Medical Group in Los Angeles in the 1920s and became popular in the 1930s and 1940s. In a prepaid group practice, patients paid a fixed fee to a medical group that would provide all necessary medical care, including hospitalization and specialist services.

Physicians were salaried employees of the medical group and were incentivized to keep patients healthy and prevent illness, rather than treating them only when they were sick. This model laid the foundation for the development of managed care organizations like HMOs in the mid-20th century.

So, correct option is B.

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Whenever somebody deposits a check from Bank A into a checkable deposit at Bank B, Bank A's reserves decrease, and Bank B's reserves increase.

Therefore, the correct answer is: decrease; increase.

When a customer deposits a check from Bank A into their account at Bank B, Bank B sends the check to Bank A for processing. Bank A then transfers the funds from its reserves to Bank B's reserves to cover the amount of the deposit. This results in a decrease in Bank A's reserves and an increase in Bank B's reserves.

In general, reserves refer to assets that are set aside or kept in reserve for future use or as a contingency. Here are some examples of different types of reserves:

Financial reserves: These are funds set aside by an individual or organization to cover future expenses or emergencies. Examples include personal savings, emergency funds

Therefore, the correct answer is: decrease; increase.

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A purchased the watch for Rs. 200. Option c is Correct.

A fresh deal for 1,000 aircraft was made by the government. Additionally, you should use "purchase" when you require a noun form, as in the sentence: You made a wise purchase when you bought petrol before the price increased. In conclusion, try to use "buy" for straightforward activities and "purchase" for more official transfers of money for things.

Let's assume that the price at which A purchased the watch is x.

A sold the watch to B at a 20% gain, which means B paid 120% of the price A paid:

120% of x = 1.2x

B sold the watch to C at a loss of 10%, which means C paid 90% of the price B paid:

90% of 1.2x = 1.08x = Rs. 216

Solving for x, we get:

x = Rs. 200

Therefore, A purchased the watch for Rs. 200. Option c is Correct.

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Based on the expected value of each investment, you should choose investment B as it has a higher expected value of $23,000 compared to investment A with an expected value of $10,000.

The expected value of investment A can be calculated as:

(0.25 x -20000) + (0.5 x 0) + (0.25 x 80000) = 10000

However, it's important to note that this decision should also take into account other factors such as the level of risk and personal preferences.

The expected value of investment B can be calculated as: (0.3 x -50000) + (0.5 x 0) + (0.2 x 180000) = 23000

Investment A has a higher probability, with a 25% chance of losing $20,000, Investment B has a higher potential loss with a 30% chance of losing $50,000.

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The closest answer choice for ROI is 29.4%. The correct answer is c.

To calculate the return on investment (ROI), we need to divide the net income by the total investment, and then multiply by 100 to express it as a percentage.

First, we need to calculate the net income. Net sales minus cost of goods sold equals gross profit. Gross profit minus operating expenses equals net income.

Net sales - Cost of goods sold = Gross profit

$280,611 - $110,900 = $169,711

Gross profit - Operating expenses = Net income

$169,711 - $45,315 = $124,396

Now, we need to calculate the total investment. The total investment includes the owner's equity and any other investments made in the business.

Total investment = Owner's equity + Additional investments

$423,600 + Additional investments = Total investment

Unfortunately, we do not have information on any additional investments, so we cannot calculate the exact ROI. However, we can calculate the minimum ROI based on the given information.

Minimum ROI = Net income / Owner's equity

$124,396 / $423,600 = 0.2937

Multiplying by 100 to express as a percentage gives us:

Minimum ROI = 29.4%

Therefore, the closest answer choice is (c) 29.4%. However, it should be noted that this is the minimum ROI, and the actual ROI may be higher if there are additional investments made in the business.

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Apple is best known for creating innovative products and services that have revolutionized the technology industry. In this executive summary, we will highlight their key offerings, which include the iPhone, iPad, Mac computers, Apple Watch, Apple TV, and various services such as Apple Music, iCloud, and the App Store. These offerings have not only established Apple as a market leader but also continue to shape the future of technology and user experiences.

In executive summary we will focus on the fact that Apple is best known for creating a range of innovative and high-quality products and services, including iPhones, iPads, Macs, Air Pods, and Apple Watches. The company's dedication to design, user experience, and technology has allowed it to become a leading player in the technology industry. Apple's products are known for their sleek designs, high-performance hardware, and user-friendly software.

In addition to hardware, Apple also provides a range of services, including the App Store, Apple Music, Apple TV+, and iCloud. These services complement Apple's hardware products and provide a seamless and integrated user experience. Overall, Apple's commitment to excellence and innovation has made it a leader in the technology industry and a brand that is recognized and admired worldwide.

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This statement is in reference to the concept of the marginal propensity to consume (MPC), which measures the percentage of an increase in income that is spent on consumption.

As the MPC increases, individuals are more likely to spend a larger proportion of their income on goods and services, rather than saving it.

In terms of tax cuts, if the goal is to induce a specific initial increase in consumption, a greater tax cut would be needed if the MPC is higher. This is because a higher MPC means that more of the additional income from the tax cut will be spent on consumption, rather than being saved or used to pay off debts.

For example, if the MPC is 0.8, meaning that for every $1 increase in income, $0.80 is spent on consumption, then a $100 tax cut would lead to an initial increase in consumption of $80. However, if the MPC is 0.6, meaning that for every $1 increase in income, $0.60 is spent on consumption, then a $100 tax cut would only lead to an initial increase in consumption of $60. Therefore, a greater tax cut would be needed to induce the same initial increase in consumption if the MPC is higher.

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Consider an open economy. if aggregate desired saving is greater than aggregate desired investment, then financial account balance is positive. The correct option is c.

In an open economy the ratio of aggregate desired saving to aggregate desired investment indicates that the nation is saving more than it is investing. This suggests that there are excess savings in the economy that are not being put to use as investments.

In a market economy surplus savings can be spent on foreign assets or debt repayment. As a result there would be a capital outflow and a corresponding rise in the balance of the financial accounts.

The domestic economy would also experience a slowdown as a result of excessive savings and low investment which would result in lower imports and a surplus in the current account. The correct option is c.

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Alpha company loaned $5,000 to beta company on october 1, year 1 at 6% interest. on december 31, year 1 alpha company's financial statements will report accrued interest of $75.

To calculate the accrued interest on Alpha Company's loan to Beta Company, we'll need to use the following formula:

Accrued Interest = Principal x Interest Rate x Time

Here's a step-by-step explanation:

1. Principal: The amount loaned, which is $5,000.
2. Interest Rate: 6% per year, but we need to convert it to a decimal by dividing by 100. So, 6 ÷ 100 = 0.06.
3. Time: The time period for which the interest is being calculated. Since the loan was given on October 1 and we're calculating the interest until December 31, we have a total of 3 months (October, November, and December). We need to express this in terms of years, so we'll divide 3 by 12 (since there are 12 months in a year). So, 3 ÷ 12 = 0.25.

Now, we can plug these values into the formula:
Accrued Interest = $5,000 x 0.06 x 0.25
Accrued Interest = $5,000 x 0.015
Accrued Interest = $75

On December 31, Year 1, Alpha Company's financial statements will report accrued interest of $75.

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I have found that Apple Inc., a publicly traded company, has bonds on its balance sheet.

According to Apple's balance sheet, as of September 25, 2021, the company had $121.6 billion in long-term debt, which includes the current portion of long-term debt.

The company's long-term debt consists of bonds issued in various tranches with different maturity dates, interest rates, and other terms. Apple discloses the details of these bond transactions in its footnotes to the financial statements.

One reason why a company may choose to issue bonds rather than stock to fund its business is that bonds provide a fixed interest rate that the company must pay to bondholders.

In contrast, stock dividends are not guaranteed and are dependent on the company's performance.

By issuing bonds, a company can secure a fixed cost of debt financing, which can help with financial planning and forecasting.

Additionally, issuing bonds can be less dilutive to existing shareholders than issuing additional stock.

However, issuing bonds does increase the company's debt load and interest expenses, which can impact its financial flexibility and creditworthiness.

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The graphs show that agriculture makes up a sizable component of Bolivia's labour force, which is also significantly represented in the services sector.

The graph shows that the services sector employs the largest proportion of Bolivia's labour force. This shows that the service sector is very important to the economy and employment of the nation. According to the graph, agriculture accounts for a sizable share of the labour force in Bolivia. This shows that agriculture is still a crucial industry for the nation's economy and way of life. The graph does not specify the precise percentage of Bolivians employed in the industrial sector. Because of this, we cannot draw the conclusion that industry employs a smaller number of people than services.

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Vertical collaboration refers to collaboration that moves up the supply chain. Option 1 is correct.

Vertical collaboration involves cooperation among entities in different stages of the supply chain, such as manufacturers, distributors, and retailers. This collaboration aims to improve efficiency, reduce costs, and enhance the overall performance of the supply chain. For example, a manufacturer may collaborate with its suppliers to improve the quality of raw materials or to reduce delivery times.

Similarly, a retailer may collaborate with its distributors to optimize inventory management and reduce out-of-stock situations. Vertical collaboration can also involve the sharing of information and resources, such as transportation and warehousing, among different entities in the supply chain. By working together, entities in the supply chain can better meet customer demand, improve customer satisfaction, and ultimately increase profitability. Hence Option 1 is correct.

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An effective instructor should possess the leadership quality of sound judgment to routinely make and maintain appropriate decisions, actions, and relationships. They should be able to think critically, consider all available information, evaluate alternatives, and make informed decisions that align with the organization's goals and values. Additionally, they should be able to establish and maintain positive relationships with students, colleagues, and stakeholders by demonstrating integrity, respect, empathy, and effective communication skills.

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If you purchased one silver futures contract at $2 per ounce and the silver spot price at maturity is $3.50 per ounce, your profit would be $7,500.

If you purchased one silver future contract at $2 per ounce, and the silver spot price at maturity is $3.50 per ounce, your profit would be:

Profit per ounce = Spot price - Futures price

Profit per ounce = $3.50 - $2 = $1.50

Profit for 1 contract (5,000 ounces) = Profit per ounce * Contract size

Profit for 1 contract = $1.50 * 5,000 = $7,500

This is calculated by taking the difference between the contract price and the spot price, which is $1.50 per ounce.

Multiply that by the contract size of 5,000 ounces, and you get a profit of $7,500. Futures contracts allow traders to profit from price movements without actually taking physical delivery of the underlying commodity. In this case, you would have made a profit by buying the futures contract at a lower price and selling it at a higher price, without ever having to handle the physical silver.

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In perfect competition, there are a large number of firms competing in the market, and each firm has no control over the price of the product.

In perfect competition price is determined by the market forces of supply and demand. This means that firms have to compete based on the quality of their product, customer service, and other non-price factors. In oligopoly, there are a small number of firms that dominate the market, and they have some control over the price of the product.

In monopolistic competition, there are many firms competing in the market, but each firm has some control over the price of its product. This is because each firm sells a differentiated product, which means that they have some market power.

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The type of pay plan that employees at a local lumber company had a percentage of the company's profits placed in their retirement plan when the company exceeded their targets for the year is profit sharing.

What is Profit Sharing? Profit sharing is a compensation program that companies use to distribute a portion of their profits to their workers. The company's employees receive a percentage of the company's earnings in proportion to their earnings. It provides a financial reward to employees for their contributions to the company's success. The goal of profit-sharing is to improve employee morale and provide an incentive for workers to work more effectively. When the company performs well, employees receive a portion of the profits.

In contrast, if the company performs poorly, employees will not receive a profit-sharing bonus. The workers at the local lumber company had a percentage of the company's profits placed in their retirement plan when the company exceeded their targets for the year is called profit sharing.

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Promoting stable economic growth, maximizing employment, and stabilizing prices are key objectives of monetary policy. However, in the given scenario, where there are competing viewpoints on the relationship between increased money supply and inflation, it is important to carefully consider the available evidence and weigh the potential trade-offs. In this analysis, we will explore the factors influencing inflation and provide a recommendation for enacting a sound monetary policy.

Explanation:

Recommendation:

Based on the competing viewpoints and the given economic conditions, the recommendation for enacting a sound monetary policy would be to maintain a cautious and balanced approach. This entails monitoring the inflationary pressures closely while considering the deflationary factors in the economy. The Federal Reserve should continue to assess the effectiveness of its policies and make adjustments as necessary to promote stable economic growth, maximize employment, and stabilize prices.

Conclusion:

In conclusion, enacting a sound monetary policy to promote stable economic growth, maximize employment, and stabilize prices requires careful consideration of the factors influencing inflation and the overall economic conditions. By maintaining a cautious and balanced approach, considering the impact of unemployment, the real estate market, and manufacturing output, and coordinating with fiscal policies, the Federal Reserve can work towards achieving these objectives while managing potential inflationary pressures. Regular monitoring and adjustment of monetary policy are essential to respond effectively to changing economic conditions and maintain a stable and resilient economy.

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The value of a share of Auto Parts Inc. is $18.17.

To calculate the value of a share of Auto Parts Inc., we can use the dividend discount model, which values a stock based on the present value of its future dividends. Using the formula D1 / (r - g), where D1 is the expected dividend in year one, r is the required rate of return or interest rate, and g is the expected growth rate of the dividend, we can calculate the value of the share.

Plugging in the given values, we get:

Value of the share = $1.1 / (0.086 - 0.022) = $18.17 (rounded to 2 decimal places)

Therefore, the value of a share of Auto Parts Inc. is $18.17 under the given assumptions. This means that if the stock is currently trading at a price lower than $18.17, it may be undervalued and could potentially be a good investment opportunity. However, if the stock is trading at a price higher than $18.17, it may be overvalued and could potentially be a risky investment.

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The theory concept approach of business structure refers to the process of selecting and organizing the most suitable organizational structure for a company.

The theory concept approach of business structure involves considering various factors such as the company's goals, size, and industry to determine the most effective way to allocate resources, delegate responsibilities, and facilitate communication. The main steps in this approach are:
1. Identify the company's objectives and strategies: Understand the goals and plans of the business to help determine the appropriate structure.
2. Evaluate the external environment: Analyze the industry, competition, and market trends to identify the optimal structure that allows for flexibility and adaptability.
3. Assess the internal resources: Examine the company's resources, including human capital, financial capabilities, and technological assets, to establish a structure that best utilizes them.
4. Choose the appropriate business structure: Select the most suitable structure, such as functional, divisional, matrix, or network, based on the gathered information.
5. Implement the chosen structure: Integrate the new structure into the company's operations and processes, ensuring that it is properly communicated and understood by all employees.
6. Monitor and adjust the structure as needed: Regularly evaluate the effectiveness of the business structure and make adjustments as necessary to remain competitive and efficient in the market.

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Answer:

b. $250,000.

The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that provides deposit insurance to depositors in U.S. banks. The FDIC insures deposits in most banks up to a maximum amount of $250,000 per depositor, per insured bank, for each account ownership category. This means that if you have multiple accounts with different ownership categories in the same bank, each category is separately insured up to the maximum limit.

A process is considered to be minimally capable if its process capability index is less than 1.0. Option B is the answer.

The process capability index, also known as CpK, is a statistical measure of the ability of a system to produce output that satisfies customer specifications. It is used to quantify how well a process performs relative to its customer requirements, as well as to compare different processes.

A process capability index of at least 1.0 is considered to be adequate. If the process capability index is less than 1.0, the process is deemed to be minimally capable, which means that it cannot meet customer requirements to the extent that is needed.

Therefore, the correct answer is option B: Less than 1.0.

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Since the price elasticity of demand for potatoes is greater than 1, we can infer that consumer demand is elastic, meaning that a drop in price will result in a disproportionately large increase in the amount demanded.

The following formula elasticity can be used to determine the percentage change in potatoes quantity requested for each individual: In regards to Caroline:

Initial quantity requested (at CHF 5 per kilogram) equals 500 grams plus 800 grams, or 1300 grams. At CHF 4 per kilogram, the new quantity required is equal to 260 kg (500 grams at CHF 5 per kilogram plus 800 grams at CHF 4 per kilogram). Demand quantity change as a percentage: (260 - 1300)/1300 * 100% = -80.77%

Gustavo's benefit:

Initial quantity requested (at CHF 5 per kilogram) equals 1000 grams plus 1200 grams, or 2200 grams.

New quantity required (at CHF 4 per kilogram) equals 1000 grams at CHF 5 per kilogram plus 1200 grams at CHF 4 per kilogram for a total of 360 kg.

Demand quantity change as a percentage: (360 - 2200)/2200 * 100% = -83.64%

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To compute Dow's basic and diluted earnings per share for the year ended December 31, 2021, we first need to determine the weighted average number of common shares outstanding during the year.

Weighted Average Shares Outstanding:
Initial shares: 780,000
Stock dividend (5%): 39,000
Shares sold on Feb 28: 68,000
Shares retired on July 1: -5,000

Weighted average shares outstanding: 882,000

Basic Earnings Per Share (EPS):
Net income: $3,000,000
Basic EPS = Net Income / Weighted Average Shares Outstanding
Basic EPS = $3,000,000 / 882,000
Basic EPS = $3.40

Now let's calculate the diluted EPS, considering the convertible bonds and stock options:

Convertible Bonds:
Each $1,000 bond is convertible into 25 common shares.
Total convertible shares: ($1,000,000 / $1,000) * 25 = 25,000 shares
Adjusted net income for conversion: $3,000,000 + ($1,000,000 * 8% * (1 - 0.25)) = $3,060,000

Stock Options:
Only the options granted on December 31, 2021, affect the calculation.
Additional shares for options: 23,500

Total diluted shares outstanding: 882,000 + 25,000 (bonds) + 23,500 (options) = 930,500

Diluted EPS = Adjusted Net Income / Total Diluted Shares Outstanding
Diluted EPS = $3,060,000 / 930,500
Diluted EPS = $3.29

In conclusion, Dow's basic earnings per share for the year ended December 31, 2021, is $3.40, and the diluted earnings per share is $3.29.

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All three investments have the same risk, Mr. Hayes should select the investment with the highest after-tax yield, which is Investment 1 with an after-tax yield of 6.1875%. Therefore, Mr. Hayes should select Investment 1.

Here are the calculations for each investment option:

Before-tax yield refers to the total amount of income or return earned on an investment before any taxes are paid. It is the rate of return that an investment generates based on its income or capital gains. This is the rate at which an investor is compensated for their investment without taking into account any tax liabilities. Once taxes are taken into account, the after-tax yield is calculated.

Investment 1:

Before-tax yield: 8.25%

After-tax yield: 8.25% * (1 - 0.25) = 6.1875%

Investment 2:

Before-tax yield: 7.00%

After-tax yield: 7.00% * (1 - 0.15) = 5.95%

Investment 3:

Before-tax yield: 6.25%

After-tax yield: 6.25% * (1 - 0) = 6.25%

Given that all three investments have the same risk, Mr. Hayes should select the investment with the highest after-tax yield, which is Investment 1 with an after-tax yield of 6.1875%. Therefore, Mr. Hayes should select Investment 1.

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The accounting treatment for the fair value hedge involves calculating the fair value of the note and the fair value of the interest rate swap agreement at the end of each year, and recording the changes in fair value in the income statement.

The fair value of the note is calculated using the present value formula, assuming that market interest rates have declined to 8% at the end of each year. The fair value of the swap is calculated using the formula for the fair value of a swap, which takes into account the notional amount, fixed rate, and floating rate.

Since the swap is a fair value hedge, any gains or losses on the swap will be offset by changes in the fair value of the note. Therefore, the net effect on the income statement will be the change in fair value of the note.

Based on the calculations, the net effect on the income statement for the three-year period is a loss of $3,959.10.

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The Current ratio is; 2.90, Accounts receivable turnover is 5.23, the Average collection period is 69.79,  Inventory turnover is 3.67, Days in inventory will be 99.46, and the Free cash flow is $8,200.

Current ratio;

Current ratio =Current assets/Current liabilities

Current assets = Cash + Accounts receivable (net) + Inventory = $16,140 + $75,320 + $64,560 = $156,020

Current liabilities = Accounts payable = $53,800

Current ratio = $156,020 / $53,800

= 2.90

Accounts receivable turnover;

Accounts receivable turnover =Net credit sales/Average accounts receivable

Net credit sales =Sales on account - Sales returns and allowances = $392,900 - $27,300 = $365,600

Average accounts receivable = (Beginning accounts receivable + Ending accounts receivable) / 2 = ($64,560 + $75,320) / 2

= $69,940

Accounts receivable turnover = $365,600 / $69,940

= 5.23

Average collection period;

Average collection period =365 days/Accounts receivable turnover

Average collection period = 365 / 5.23

= 69.79

Inventory turnover;

Inventory turnover = Cost of goods sold/Average inventory

Average inventory = (Beginning inventory + Ending inventory) / 2 = ($53,800 + $64,560) / 2

= $59,180

Inventory turnover = $217,300 / $59,180

= 3.67

Days in inventory;

Days in inventory = 365 days/Inventory turnover

Days in inventory = 365 / 3.67 = 99.46

Free cash flow;

Free cash flow =Net cash provided by operating activities-Capital expenditures - Cash dividends

Free cash flow = $57,200 - $30,000 - $19,000

= $8,200

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