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Homework answers / question archive / 1)Compute the multifactor productivity ratio for each of the days shown in the table
1)Compute the multifactor productivity ratio for each of the days shown in the table. Use an 8-hour work day and an hourly wage of $ 16. Overhead is 1.5 of labor costs and material costs are $ 7 per customer. Enter the multifactor productivity ratio for the day that was most productive. (round your final answer to 4 decimal places ) Day Staff Customer 1 3 11 29 8 3 12 14
2)Change in non-cash working capital of a company in a fiscal year should be adjusted when converting net income into cash flow in operating activities. Which sentences are correct in finding the change in non-cash working capital? A. Increased accounts receivables will increase non-cash working capital. B. Increased accounts payable will increase non-cash working capital. C. Increased notes payable will decrease non-cash working capital. 1) A only 2) B only 3) C only 4) A and B only 5) A and C only 23. Find a correct sentences about Asset Turnover Ratio A. Reasonable asset turn over ratios vary between different industries B. Generally asset turnover ratio of a manufacturing company is smaller than that of consulting company C. Generally asset turnover ratio of a manufacturing company is bigger than that of consulting company 1) A only 2) B only 3) C only 4) A and B only 5) A and C only
24. York Inc has gone through a huge decrease in demand before the end of fiscal year last year. An unusual costumer bought a large amount of inventories from York Inc. An internal accountant was not aware of this transaction and simply input the beginning balance and the year end balance of inventories in order to calculate the inventory liquidity of York Inc. What sentences are correct? A. Inventory processing days will be lower than the actual value B. Inventory turnover ratio will be lower than the actual value C. liquidity of inventory will be lower than the actual value 1) A only 2) B only 3) C only 4) A and C only 5) None of above
3)On August 13, 2017, Merrill Enterprises purchased equipment for $2,000 and supplies of $400 on account. Which of the following journal entries is recorded correctly and in the standard format? 2,000 2,400 400 2,000 400 2,400 Equipment Account Receivable Supplies O Equipment. Supplies Accounts Payable O Accounts Payable Equipment Supplies O Equipment Accounts Payable. Supplies 2,400 2,000 400 2,000 2,400 400
1)
Multifactor productivity = Output / Total Input cost
Output = Number of customers
Total Input cost = Labor cost + Overhead cost + Material cost
Labor cost = Number of staff x Hourly wage rate x Number of work hours each day
Overhead cost = 1.5 x Labor cost
Material cost = 7 x Number of customers
Day 1:
Output = 11
Labor cost = 3 x 16 x 8 = $ 384
Overhead cost = 1.5 x 384 = $ 576
Material cost = 7 x 11 = $ 77
So, Total Input cost = 384 + 576 + 77 = 1037
Therefore,
Multifactor productivity = 11 / 1037 = 0.0106
Day 2:
Output = 8
Labor cost = 9 x 16 x 8 = $ 1152
Overhead cost = 1.5 x 1152 = $ 1728
Material cost = 7 x 8 = $ 56
So, Total Input cost = 1152+ 1728 + 56 = 2936
Therefore,
Multifactor productivity = 8 / 2936 = 0.0027
Day 3:
Output = 14
Labor cost = 12 x 16 x 8 = $ 1536
Overhead cost = 1.5 x 1536 = $ 2304
Material cost = 7 x 14 = $ 98
So, Total Input cost = 1536 + 2304 + 98 = 3938
Therefore,
Multifactor productivity = 14 / 3938 = 0.0035
Multifactor productivity for Day 1 is the highest.
So, Day 1 was most productive with a Multifactor Productivity of 0.0106
2)
Answer to question 22
Reason :
Increase in account receivable will lead to increase in non cash working capital as current asset increase non cash working capital is also increase because working capital= current asset- current liability. There is positive relationship among working capital and account receivable.
Answer to question 23
Reason:
Reasonable asset turnover ratio very from different industry.because different industry has different factor, capital,asset so there is different.
Answer to question 24
Reason:
Because as inventory will sold out in lower days so there is less actual days in inventory.
3)
Answer:
| Equipment | 2,000 | |
| supplies | 400 | |
| Accounts payable | 2,400 |
Explanation
1. Why equipment and supplies are debited:
As per financial accounting, all assets have debit balances. This means, any increase in the value of asset should be debited and any decrease in the asset should be credited. As we know, equipment and supplies are assets. When equipment and supplies are purchased, they are taken into the business and the value of equipment in the business is $2,000 and the value of supplies in the business is $400 now. That's why they are debited.
2. Why accounts payable is credited:
The equipment and supplies are purchased on account. This means, cash is not paid immediately for the purchase. So, cash have to be paid in future. This creates a liability. Liabilities have credit balance. The amount payable in future is $2,400 (2,000 + 400). So, that liability of $2,400 is credited as "accounts payable".
