Answer:
A. )exist when the usefulness of a product increases with the number of consumers who use it
Explanation:
Network externality can be regarded as a change that occur in benefit as well as in surplus, which is been derived by agent from a good when there is a change in number of other agents that consumes this same type of good. Network externality can as well be regarded as "network effect" this effect is one is that is been had by one user of a good/service on the value of the product with respect to each other people.
It should be noted that Network externalities exist when the usefulness of a product increases with the number of consumers who use it
Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 26 percent for the next 3 years, with the growth rate falling off to a constant 7 percent thereafter. If the required return is 14 percent and the company just paid a $1.90 dividend. what is the current share price
Answer:
$46.20
Explanation:
Dividend in year 1 = 1.90 x 1.26 = 2.39
Dividend in year 2 = 1.90 x 1.26² = 3.02
Dividend in year 3 = 1.90 x 1.26³ = 3.80
Dividend in year 3 = (3.80 x 1.07) / (0.14 - 0.07) = 58.10
Calculate the present value of these dividends
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 = 2.39
Cash flow in year 1 = 3.02
Cash flow in year 1 = 3.80 + 58.10
I = 14
PV = $46.20
To determine PV using a financial calculator take the following steps:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Journalize the entries for the following transactions:
Mar. 1 Established a petty cash fund of $771.
31 The amount of cash in the petty cash fund is now $632. The fund is replenished based on the following receipts: office supplies, $33 selling expenses, $113.
Record any discrepancy in the cash short and over account. If an amount box does not require an entry, leave it blank.
Answer:
Mar 1
Dr Petty Cash $771.00
Cr Cash $771.00
Mar 31
Dr Office Supplies $33.00
Dr Selling Expenses 113.00
Cr Cash Short and Over $27.00
Cr Cash $119.00
Explanation:
Preparation of the entry to Record any discrepancy in the cash short and over account.
Mar 1
Dr Petty Cash $771.00
Cr Cash $771.00
(To record petty cash)
Mar 31
Dr Office Supplies $33.00
Dr Selling Expenses 113.00
Cr Cash Short and Over $27.00
[($33+$133+$632)-$771]
Cr Cash $119.00
(33+$133-$27)
(To Record discrepancy in the cash short and over account)
A portfolio's return is the weighted average of each individual investment's return. However, a portfolio's risk is not the weighted average of each investment's standard deviation.
a. True
b. False
As the operations manager, you prefer to keep a constant workforce and production level, absorbing variations in demand through inventory excesses and shortages. Demand not met is carried over to the following month. Assuming you currently have 23 workers, what is the shortage cost for May
Answer:
Shortage cost for May is $71,000
Explanation:
The expected demand for the month of May is 5000 units.
Shortages for month are carried to next month.
Shortage cost is $10 per month.
(Working days per month x hrs/day x # of workers)
20 days * 8 hours * 23 workers = 3680
Jan : 3680 - 3500 = +180
Feb : 3680 + 180 - 4500 = -640
Mar : 3680 - 640 -6000 = -2980
Apr : 3680 - 2980 -6500 = 5780
May : 3680 - 5780 -5000 = 7100
_______________ tasks are non-repetitive in nature and involve considerable
application of knowledge, judgment, and expertise. As such, the teams draw their members from different disciplines and functional units, so that specialized expertise can be applied to the task(s) at hand.
1) Project teams
2) Management teams
3) Parallel teams
4) None of these make sense to me.
5) Work teams
Answer:
1) Project teams
Explanation:
Project management can be defined as the process of designing, planning, developing, leading and execution of a project plan or activities using a set of skills, tools, knowledge, techniques and experience to achieve the set goals and objectives of creating a unique product or service.
The fundamentals of Project Management are considered universal across most businesses and professions.
The fundamentals of Project Management includes;
1. Project initiation
2. Project planning
3. Project execution
4. Monitoring and controlling of the project
5. Adapting and closure of project.
Project teams comprises individuals or group of people that come together as a unit to take on a one-time and non-repetitive tasks that are generally considered to be often complex and as such would require input from members with different types of training, skills, knowledge competence and expertise.
This ultimately implies that, project teams tasks are non-repetitive in nature and involve considerable application of knowledge, skills, competence, judgment, and expertise.
The following items may appear on a bank statement: 1. NSF check 2. EFT Deposit 3. Service charge 4. Bank correction of an error from recording a $300 deposit as $30. Indicate whether the item would appear as debit or credit memo on the bank statement and whether the item would increase or
Answer:
1. NSF check
- Appears on the Bank Statement as: Debit Memo
- Decreases the Balance of the Company's Bank Account
2. EFT Deposit
- Appears on the Bank Statement as: Crediit Memo
- Increases the Balance of the Company's Bank Account
3. Service charge
- Appears on the Bank Statement as: Debit Memo
- Decreases the Balance of the Company's Bank Account
4. Bank correction of an error from recording a $300 deposit as $30
- Appears on the Bank Statement as: Debit Memo
- Increases the Balance of the Company's Bank Account
What is the plan of action used by management to identify how resources will be allocated, how the company will market in its competitive environment, and how the firm will attain its goals?
Answer: c. Strategy
Explanation:
Strategy refers to the means a person hopes to use in order to get something done. A company's strategy therefore will tell how the company will attempt to reach its goals.
It will tell the plan of action that the company will use and how resources will be allocated to satisfy the requirements of the plan. It will also tell how the company hopes to market its goods so as to gain an advantage in the market and generally everything else that the company needs to meets its goals.
Miller Juice, Inc. is not paying a dividend right now, but is expected to pay a $4.56 dividend three years from now. Investors expect that dividend to grow by 4% every year forever. If the required return on the stock investment is 14%, what should be the price of Miller Juice stock today
Answer:
$35.09
Explanation:
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
4.56 x (1.04) / (0.14 - 0.04) = $47.42
($47.42 + 4.56) / 1.14^3 = $35.09
K. Johnson, Inc.'s managers want to evaluate the firm's prior-year performance in terms of its contribution to shareholder value. This past year, the firm earned an operating income return on investment of 12 percent, compared to an industry norm of 11 percent. It has been estimated that the firm's investors have an opportunity cost on their funds of 15 percent, which is the same as the firm's overall cost of capital. The firm's total assets for the year were exist100 million.
Required:
a. Compute the amount of economic value created or destroyed by the firm.
b. How does your finding support or fail to support what you would conclude using ratio analysis to evaluate the firm's performance?
Answer:
-3 million dollars
Explanation:
we have EVA = economic value added
to ge the EVA, we use this formula :
(operating return on the assets - cost of the total capital) multiplied by the total assets
total assets = 100 million
operating return = 12 percent
cost of capital = 15 percent
the EVA = 12% - 15% * 100000000
= -0.03 * 100000000
= -3,000,000 dollars
b. The loss of the value of the shareholder is happening even though the firm is earning ROI that is more than the average firm in the industry.
Materials: Standard Actual Standard: 200 pounds at $3.00 per pound $600 Actual: 220 pounds at $2.85 per pound $627 Direct labor: Standard: 400 hours at $15.00 per hour $6,000 Actual: 368 hours at $16.50 per hour $6,072 What is the journal entry to record labor variances
Answer: Dr Work in Process 6000
Dr Labor Rate Variance 552
Cr Labor Efficiency Variance 480
Cr Payroll 6072
Explanation:
First, we need to know the labor rate variance and the labor efficiency variance which will be:
Labor Rate Variance:
= 368 × (16.50-15)
= 552 U
Labor Efficiency Variance:
= 15 × (368-400)
= 480 F
Then, the journal entry to record labor variances will be:
Dr Work in Process 6000
Dr Labor Rate Variance 552
Cr Labor Efficiency Variance 480
Cr Payroll 6072
A firm operated at 80% of capacity for the past year, during which fixed costs were $198,000, variable costs were 66% of sales, and sales were $1,082,000. Operating profit was a.$367,880 b.$714,120 c.$169,880 d.$135,904
Answer: $169,880
Explanation:
Operating profit for a company is simply its sales less its fixed costs and variable costs:
Operating profit = Sales revenue - Variable costs - Fixed costs
Variable costs:
= 66% * 1,082,000
= $714,120
Operating profit:
= 1,082,000 - 714,120 - 198,000
= $169,880
Pick a major U.S. industry, such as automobiles or computers, and discuss the lapses in technology and innovation on the domestic front that permitted foreign competitors to get a foothold and, in some cases, a dominant share of the market. Who or what do you think was to blame for this situation?
Learn more:
brainly.com/question/7443371
Flag A used car dealer advertises financing at 0% interest over 3 years with monthly payments. You must pay a processing fee of $500 at signing. The car you like costs $9000. a) What is your effective annual interest rate
Answer:
27,000
Explanation:
if you add then all together you get 2700
Grohl Co. issued 22 year bonds 2 years ago at a coupon rate of 5 percent. The bonds make semiannual payments. If the YTM on these bonds is 11 percent, what is the current bond price?
Answer:
the current bond price is $518.62
Explanation:
The computation of the current bond price is given below:
Given that
NPER = (22 - 2) × 2 = 40
Assuming future value be $1000
PMT = $1,000 ×5% ÷2 = $25
RATE = 11% ÷ 2 = 5.5%
The formula is given below:
=-PV(RATE;NPER;PMT;FV;TYPE)
After applying the above formula, the current bond price is $518.62
Compound value solving for n) How many years will the following take? a. $ to grow to $ if invested at percent compounded annually b. $ to grow to $ if invested at percent compounded annually c. $ to grow to $ if invested at percent compounded annually d. $ to grow to $ if invested at percent compounded annually
Answer:
Note: The complete question is attached below as picture
A = P(1+r/100)^n Where A is future value, P is present value, r is rate of interest and n is time period
1. A = P(1+r/100)^n
1042.51 = 480(1.09)^n
(1042.51/480) = 1.09^n
Taking log on both sides
log(1042.51/480) = n*log 1.09
n = log(1042.51/480)/log 1.09
n = 9 years.
2. A = P(1+r/100)^n
53.26 = 31(1.07)^n
(53.26/31) = 1.07^n
Taking log on both sides
log(53.26/31) = n*log 1.07
n = log(53.26/31)/log 1.07
n = 8 years
3. A = P(1+r/100)^n
383.59 = 100(1.13)^n
(383.59/100) = 1.13^n
Taking log on both sides
log(383.59/100) = n*log 1.13
n = log(383.59/100)/log 1.13
n = 11 years.
4. A = P(1+r/100)^n
66.91 = 53(1.06)^n
(66.91/53) = 1.06^n
Taking log on both sides
log(66.91/53) = n*log 1.06
n = log(66.91/53)/log 1.06
n = 0.10121516027 / 0.025306
n = 3.9997
n = 4 years.
Tora Co. plans to produce 1,020 units in July. Each unit requires two hours of direct labor. The direct labor rate is $20 per hour. Prepare a direct labor budget for July.\
Answer: $40,800
Explanation:
Each unit requires 2 hours of direct labor.
1,020 units would therefore require:
= 1,020 * 2
= 2,040 hours of labor
The direct labor rate is $20 per hour. If there are 2,040 hours to be worked, the cost would therefore be:
= 20 * 2,040
= $40,800
U.S. Steel is considering a plant expansion to produce austenitic, precipitation hardened, duplex, and martensitic stainless steel round bars that is expected to cost $13 million now and another $10 million 1 year from now. If total operating costs will be $1.2 million per year starting 1 year from now, and the estimated salvage value of the plant is virtually zero, how much must the company make annually in years 1 through 10 to recover its investment plus a return of 15% per year
Answer:
$5.5228 million
Or
$5,522,800
Explanation:
First, calculate the present value of all cash outflows
Present value of cash outflow = Initial Cost + ( Year 1 cost x Discount factor 15%, 1 year ) + ( Annual Cost x Annuity factor 15%, 10 years )
Where
Initial cost = $13 million
Year 1 cost = $10 million
Discount factor 15%, 1 year = 1 / ( 1 + 15% )^1 = 0.8696
Annual Cost = $1.2 million
Annuity factor 15%, 10 years = 1 - ( 1 + 15% )^-10 / 15% = 5.019
Placing value sin the formula
Present value of cash outflow = $13 million + ( $10 million x 0.8696 ) + ( $1.2 million x 5.019 )
Present value of cash outflow = $13 million + $8.696 million + $6.0228 million
Present value of cash outflow = $27.7188 million
Now use the following formula to calculate the annual revenue required to recover its investment plus a return of 15% per year
Present value of Annual revenue = Annual Revenue x Annuity factor 15%, 10 years
Annual Revenue = Present value of Annual revenue / Annuity factor 15%, 10 years
Where
Present value of Annual revenue = $27.7188 million
Annuity factor 15%, 10 years = 1 - ( 1 + 15% )^-10 / 15% = 5.019
Placing value sin the formula
Annual Revenue = $27.7188 million / 5.019
Annual Revenue = $5.5228 million
Annual Revenue = $5,522,800
A depreciation adjustment would include a debit to _____________________ and __________________________ to _______________
Answer:
Depreciation Expense, Credit, Accumulated Depreciation.
You want to retire exactly 30 years from today with $1,950,000 in your retirement account. If you think you can earn an interest rate on 10.07 percent compounded monthly, how much must you deposit each month to fund your retirement
Answer:
Monthy deposit= $849.78
Explanation:
Giving the following information:
Future value (FV)= $1,950,000
Number fo periods (n)= 30*12= 360
Interest rate (i)= 0.1007/12= 0.008392
To calculate the monthly deposit, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (1,950,000*0.008392) / [(1.008392^360) - 1]
A= $849.78
Using all of their resources, Company A can make either 100 computers or 50 cell phones while Company B can make either 200 computers or 150 cell phones. If both companies have the same quantity of resources, then ________ has an absolute advantage in computers while ________ has a comparative advantage in cell phones.
Answer:
company B
company B
Explanation:
A company has comparative advantage in production if it produces at a lower opportunity cost when compared to other companies.
Opportunity cost of producing cell phones
company A = 100 / 50 = 2
company B = 200 / 150 = 1.3
The opportunity cost of company B is lower than that of company A. Company B has a comparative advantage in the production of cell phones
A company has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries
Company B produces 200 computers while company A produces 100 computer. Company B has an absolute advantage in the production of computers
The Anti-Trust Department also monitors cartels within the United States. As long as they don't control more than 40 percent of the market, then the Anti-Trust Department will leave them alone.
a. Investigating cartels is a responsibility of the Federal Reserve Bank.
b. This is a true statement.
c. This statement is false.
d. The US. Anti-Trust Department does not investigate cartels in America
Answer:
c. This statement is false.
Explanation:
Anti-Trust Department is the department in the united states that could enforced the anti-trusted law. They have the right to investigate onto the collusion, this could harm the competition that could lead the welfare loss
Since large share could be considered so it should be controlled and investigated
Therefore the given statement is false
The following data from the just completed year are taken from the accounting records of Mason Company:
Sales $656,000
Direct labor cost $80,000
Raw material purchases $135,000
Selling expenses $105,000
Administrative expenses $41,000
Manufacturing overhead
applied to work in process $201,000
Actual manufacturing
overhead costs $222,000
Required:
a. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials.
b. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold.
c. Prepare an income statement.
Answer:
Mason Company
a) Schedule of Cost of Goods Manufactured:
Direct labor cost $80,000
Raw material purchases $135,000
Manufacturing overhead
applied to work in process $201,000
Cost of goods manufactured $416,000
b) Schedule of Cost of Goods Sold:
Cost of goods manufactured $416,000
Under-applied overhead 21,000
Cost of goods sold $437,000
c) Income Statement:
Sales $656,000
Cost of goods sold $437,000
Gross profit $219,000
Selling expenses $105,000
Administrative expenses $41,000
Total expenses $146,000
Net income $73,000
Explanation:
a) Data and Calculations:
Sales $656,000
Direct labor cost $80,000
Raw material purchases $135,000
Selling expenses $105,000
Administrative expenses $41,000
Manufacturing overhead
applied to work in process $201,000
Actual manufacturing
overhead costs $222,000
Under-applied overhead $21,000 ($222,000 - $201,000)
A company issues bonds at par on April 1. These 9% bonds have a par value of $100,000 and pay interest annually. April 1,is four months after the most recent interest payment date. How much total cash interest is received on April 1 by the bond issuer
Answer: $3000
Explanation:
From the information given, we are told that a company issues bonds at par on April 1 and that these 9% bonds have a par value of $100,000 and pay interest annually. April 1,is four months after the most recent interest payment date.
The total cash interest that is received on April 1 by the bond issuer will be:
= $100000 × 9% × 4/12
= $100,000 x 0.09 x ⅓
= $3,000
Sami transferred property with a fair market value of $600 and a tax basis of $300 to a corporation in exchange for stock with a fair market value of $600. In addition, Sami received stock with a fair market value of $50 in exchange for services she provided to the corporation in the incorporation process. Which of the following statements best describes the tax result to Sami because of the exchanges?
a. Sami will recognize $50 of compensation income, but she can count the shares of stock she receives in exchange for services in determining if the control test is met under section 351.
b. Sami will recognize $50 of compensation income, but she cannot count the shares of stock she receives in exchange for services in determining if the control test is met under section 351
c. Sami will not recognize S50 of compensation income, but she can count the shares of stock she receives in exchange for services in determining if the control test is met under section 351
d. Sami will not recognize $50 of compensation income, and she cannot count the shares of stock she receives in exchange for services in determining if the control test is met under section 351
Answer: Sami will recognize $50 of compensation income, but she can count the shares of stock she receives in exchange for services in determining if the control test is met under section 351.
Explanation:
Due to the exchanges in the question, it should be noted that Sami will recognize $50 of compensation income. It should be noted that under section 351, services are not considered to be property. She can then count the stock that she get for the services in order to be able to know whether the control test is met.
From the list below, select the items that are classified as a materials activity. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
Raw materials used
Raw materials beginning inventory
Raw materials purchases
Work in process beginning inventory
Goods manufactured
Direct labor used
Factor overhead used
Answer and Explanation:
The classification is as follows:
Under Materials activity
Opening balance of Raw materials inventory
Purchase of the Raw materials purchases
Under Production activity:
OPening balance of Work-in process inventory
Raw material used
Direct labor used
Factory overhead used
Under Sales activity:
Goods manufactured
In this way it should be categorized
Hence, the same should be relevant
Item2 1 points Time Remaining 59 minutes 39 seconds00:59:39 Item 2 Time Remaining 59 minutes 39 seconds00:59:39 Crimson Inc. recorded credit sales of $755,000, of which $500,000 is not yet due, $180,000 is past due for up to 180 days, and $75,000 is past due for more than 180 days. Under the aging of receivables method, Crimson Inc. expects it will not collect 5% of the amount not yet due, 19% of the amount past due for up to 180 days, and 28% of the amount past due for more than 180 days. The allowance account had a debit balance of $2,800 before adjustment. After adjusting for bad debt expense, what is the ending balance of the allowance account
Answer:
$83,000
Explanation:
The computation of the ending balance of the allowance account is given below:
Given that
Accounts receivable not yet due be $500,000
So, the bad debt for the same should be
= 5% of $500,000
= $25,000
Accounts receivable due for upto 180 days be $180,000
So, the bad debts for the same should be
= 19% of $180,000
= $34,200
Accounts recievable due for more than 180 days be $75,000
So, the bad debts for the same should be
= 28% of $75,000
= $21,000
Now
Ending balance of Allowance aoount is
= $2,800 + $25,000 + $34,200 + $21,000
= $83,000
what are the purpose of the information in Management?
Answer:
The purpose of information management is to: design, develop, manage, and use information with insight and innovation. support decision making and create value for individuals, organizations, communities, and societies.
Answer:
It helps dictate how businesses form strategies, and implement processes based on them.
Mavs Inc. wishes to determine its cost of common stock equity, rs. The market price, P0, of its common stock is $40.07 per share. The firm expects to pay a dividend, D1, of $4.20 at the end of the coming year, 2021. The dividends paid on the outstanding stock over the past 6 years (2015â2020) were as follows:
2015 $3.60
2016 3.65
2017 3.70
2018 3.85
2019 4.00
2020 4.10
What is the cost of common stock equity financing?
Answer:
13.12%
Explanation:
Using the Gordon growth rate model, the cost of common stock equity can be determined using the formula below:
cost of common equity=expected dividend/current market price+growth rate
expected dividend=dividend in a year's time=D1= $4.20
current market price=P0=$40.07
The growth rate of the dividend can be ascertained by using the future value below:
FV=PV*(1+g)^n
FV=2020 dividend=$4.10
PV=2015 dividend=$3.60
g=growth rate=unknown
n=numbr of years between 2015 and 2020=5(dividend has grown for only 5 years not 6 years)
$4.10=$3.60*(1+g)^5
$4.10/$3.60=(1+g)^5
$4.10/$3.60 can be rewritten thus($4.10/$3.60)^1
($4.10/$3.60)^1=(1+g)^5
divide indexes on both sides by 5
($4.10/$3.60)^(1/5)=1+g
g=($4.10/$3.60)^(1/5)-1
g=2.64%
cost of common equity=($4.20/$40.07)+2.64%
cost of common equity=13.12%
Pick the correct statement related to net working capital from below. Multiple Choice Net working capital can be ignored in project analysis because any expenditure is normally recouped at the end of the project. Net working capital requirements, such as an increase in accounts receivable, create a cash inflow at the beginning of a project. Net working capital is rarely affected when a new product is introduced. Net working capital can create either an initial cash inflow or outflow. Net working capital is the only expenditure where at least a partial recovery can be made at the end of a project.
Answer:
Net working capital is the only expenditure where at least a partial recovery can be made at the end of a project.
Explanation:
Net working capital is the difference between current assets and current liabilities. Net working capital measures a company's liquidity.
In project analysis, net working capital is part of the cost. It is usually subtracted from cash inflows.
Net working capital is a cash outflow.
Net working capital is the only expenditure where at least a partial recovery can be made at the end of a project.
Year 2 Year 1 Sales $86,060 $74,200 Total assets at the end of the year 63,800 68,600 Total assets at the beginning of the year 68,600 79,800 a. Determine the asset turnover for The ABC Depot for Year 2 and Year 1. Round to one decimal place.
Answer:
a. We have:
Year 2 asset turnover = 1.3 times
Year 1 asset turnover = 1.0 time
b. Since asset turnover of the ABC Depot increases from 1.0 time in Year 1 to 1.3 times in Year 2, these turnover therefore indicate that the ability of The ABC Depot to use its assets to generate sales more effectively has increased/improved.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
The ABC Depot reported the following data (in millions) in its recent financial statements:
Year 2 Year 1
Sales $86,060 $74,200
Total assets at the end of the year 63,800 68,600
Total assets at the beginning of the year 68,600 79,800
a. Determine the asset turnover for The ABC Depot for Year 2 and Year 1. Round to one decimal place.
b. What do these turnover indicate concerning the trend in the ability of The ABC Depot to effectively use its assets to generate sales?
The explanation of the answers is now provided as follows:
a. Determine the asset turnover for The ABC Depot for Year 2 and Year 1. Round to one decimal place.
The asset turnover can be calculated using the following formula:
Asset turnover = Sales / Average total assets ………………… (1)
Where:
Average total assets = (Total assets at the beginning of the year + Total assets at the end of the year) / 2
Using equation (1), we therefore have:
Year 2 asset turnover = $86,060 / (($68,600 + $63,800) / 2) = 1.3 times
Year 1 asset turnover = $74,200 / (($79,800 +$ 68,600) / 2) = 1.0 time
b. What do these turnover indicate concerning the trend in the ability of The ABC Depot to effectively use its assets to generate sales?
A higher asset turnover indicates that a company is using its assets to generate sales more effectively.
Since asset turnover of the ABC Depot increases from 1.0 time in Year 1 to 1.3 times in Year 2, these turnover therefore indicate that the ability of The ABC Depot to use its assets to generate sales more effectively has increased/improved.
