Consider the following balance sheet, for games inc. because games has $800,000 of retained earnings, we know that the company would be able to pay cash to buy an asset with a cost of $200,000. cash $ 50,000 accounts payable $ 100,000 inventory 200,000 accruals 100,000 accounts receivable 250,000 total cl $ 200,000 total ca $ 500,000 debt 200,000 net fixed assets $ 900,000 common stock 200,000 retained earnings 800,000 total assets $1,400,000 total l & e $1,400,000
a. true
b. false

Which of the following is an example of a production quota? a. the government sets an upper limit on the quantity that each dairy farmer can produce. b. the government sets a price floor in the market for dairy products. c. the government sets a lower limit on the quantity that each dairy farmer can produce. d. the government guarantees to buy a specified quantity of dairy products from farmers.

Ardmore farm and seed has an inventory dilemma. they have been selling a brand of very popular insect spray for the past year. they have never really analyzed the costs incurred from ordering and holding the inventory and currently fave a large stock of the insecticide in the warehouse. they estimate that it costs $25 to place an order, and it costs $0.25 per gallon to hold the spray. the annual requirements total 80,000 gallons for a 365 day year.a. assuming that 10,000 gallons are ordered each time an order is placed, estimate the annual inventory costs.b. calculate the eoq.c. given the eoq calculated in part b., how many orders should be placed and what is the average inventory balance? d. if it takes seven days to receive an order from suppliers, at what inventory level should ardmore place another order?

One pound of material is required for each finished unit. the inventory of materials at the end of each month should equal 20% of the following month's production needs. purchases of raw materials for february would be budgeted to be: