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28. Based upon your textbook’s discussion as well as your accounting and finance

ID: 379602 • Letter: 2

Question

28. Based upon your textbook’s discussion as well as your accounting and finance course work you should have completed to date, when it comes to cash-to-cash conversion cycle, if an online retail store has cost of goods sold equal to $2 million, has 200 operating days in a year, and has a total average on-hand inventory of $500,000, the cost of goods sold per day is _____.

a. $2,500

b. $15,000

c. $7,500

d. $10,000

e. $5,000

29. Based upon your textbook’s discussion as well as your accounting and finance course work you should have completed to date, TekSupply Inc., an automobile parts supplier, held an average automobile parts inventory of $4 million last year. Its cost of goods sold was $25 million. Therefore, the automobile parts experienced an inventory turnover of ____ turns last year.

a. 2.51

b. 4.25

c. 6.25

d. 9.50

e. 12.25

30 . A firm that specializes in certain types of goods-producing activities, such as customized design, manufacturing, assembly, and packaging, and works for end-users is consider primarily a ______ .

a. responsive supply chain

b. contract manufacturer

c. distribution center

d. vendor-managed inventory supplier

e. back-hold entrepreneurial supply chain vendor

Explanation / Answer

28.

Cost of good sold/day = total cost of goods sold / no. of days = 2,000,000 / 200 = $10,000

Hence answer is d.

29.

inventory turnover = cost of goods sold / average inventory = 25/4 = 6.25

Hence answer is c.

30.

Such a firm serving end-users and producing customized goods as per their need is called a Contract manufacturer

Hence answer is b.

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