If a firm\'s net income (profits before taxes) is $120,000 and it has total asse

Question

If a firm's net income (profits before taxes) is $120,000 and it has total assets of $1.5 million, what is its return on assets (expressed as a percentage)? If a firm's cost of goods sold is $2.5 million and its average inventory is $500,000, what is the inventory turnover (i.e., how many times does inventory turnover per year)? If a firm sustains the same level of operations in terms of sales and administrative expenses, but reduces its materials cost by $50,000 through smarter purchases, what is the profit-leverage effect on profits before taxes expressed as a dollar value? Global sourcing has become commonplace. Many companies have now expanded their supply base to include foreign suppliers. List three reasons why companies may choose to source their products and/or materials globally. What sourcing strategy would typically be used for each of the following items? Item A: high volume/value, low risk, multiple potential suppliers Item B: low volume/value, high risk, very few potential suppliers (A) Which manufacturing strategy has the shortest / fastest lead time from the customer's perspective? (B) Which manufacturing strategy(s) is most aligned with batch manufacturing? 10 What are the TWO primary philosophies discussed in Chapter 8 - Operations Management that are used to help manage operations in the supply chain. Provide the main objectives for each of the two philosophies.

Explanation / Answer

Dear student, only one question is allowed at a time. I am answering the first question

4)

Net Income = $120,000

Total assets = $ 1,500,000

Return on assets

= Net Income / Total assets x 100

= $120,000 / $ 1,500,000 x 100

= 8%

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