Question
In: Accounting
The Miserly Manufacturing Company's CPO has been tasked with reducing inventory in order to facilitate achieving...
The Miserly Manufacturing Company's CPO has been tasked with reducing inventory in order to facilitate achieving its CFO's Return on Assets (ROA) objective for the next fiscal year. Inventory investments currently represent 42% of Total Assets. The most recent balance sheet indicates that Total Assets are $750,000. Last fiscal year, Miserly achieved a 5% Profit Margin on $1,312,500 in Annual Sales. ROA was 8.75%. This year the CFO wishes to achieve a 9.61% ROA. What will investment in Inventory have to be in order to achieve this goal?
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as...
Baab Corporation is a manufacturing firm that uses job-order
costing. The company's inventory balances were as follows at the
beginning and end of the year:
Beginning Balance
Ending Balance
Raw materials
$
14,200
$
22,200
Work in process
$
27,200
$
9200
Finished Goods
$
62,200
$
77,200
The company applies overhead to jobs using a predetermined
overhead rate based on machine-hours. At the beginning of the year,
the company estimated that it would work 33,200 machine-hours and
incur $245,680...
Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as...
Baab Corporation is a manufacturing firm that uses job-order
costing. The company's inventory balances were as follows at the
beginning and end of the year:
Beginning Balance
Ending Balance
Raw materials
$
14,950
$
22,950
Work in process
$
27,950
$
9,950
Finished Goods
$
62,950
$
77,950
The company applies overhead to jobs using a predetermined
overhead rate based on machine-hours. At the beginning of the year,
the company estimated that it would work 33,950 machine-hours and
incur $302,155...
Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as...
Baab Corporation is a manufacturing firm that uses job-order
costing. The company's inventory balances were as follows at the
beginning and end of the year:
Beginning Balance
Ending Balance
Raw materials
$
14,750
$
22,750
Work in process
$
27,750
$
9,750
Finished Goods
$
62,750
$
77,750
The company applies overhead to jobs using a predetermined
overhead rate based on machine-hours. At the beginning of the year,
the company estimated that it would work 33,750 machine-hours and
incur $286,875...
Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as...
Baab Corporation is a manufacturing firm that uses job-order
costing. The company's inventory balances were as follows at the
beginning and end of the year:
Beginning Balance
Ending Balance
Raw materials
$
14,250
$
22,250
Work in process
$
27,250
$
9,250
Finished Goods
$
62,250
$
77,250
The company applies overhead to jobs using a predetermined
overhead rate based on machine-hours. At the beginning of the year,
the company estimated that it would work 33,250 machine-hours and
incur $249,375...
Arnold Company is a manufacturing firm that uses job-order costing. The company's inventory balances were as...
Arnold Company is a
manufacturing firm that uses job-order costing. The company's
inventory balances were as follows at the beginning and end of the
year:
Beginning Balance
Ending Balance
Raw materials
$21,000
$24,000
Work-in-process
$40,000
$22,000
Finished goods
$26,000
$41,000
The company applies
overhead to jobs using a predetermined overhead rate based on
machine-hours. At the beginning of the year, the company estimated
that it would work 38,000 machine-hours and incur $266,000 in
manufacturing overhead cost. The following transactions were...
Baab Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as...
Baab Corporation is a manufacturing firm that uses job-order
costing. The company's inventory balances were as follows at the
beginning and end of the year:
Beginning Balance
Ending Balance
Raw
materials
$
14,800
$
22,800
Work in
process
$
27,800
$
9,800
Finished
Goods
$
62,800
$
77,800
The company applies overhead to jobs using a predetermined
overhead rate based on machine-hours. At the beginning of the year,
the company estimated that it would work 33,800 machine-hours and
incur $290,680...
Frank Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as...
Frank Corporation is a manufacturing firm that uses job-order
costing. The company's inventory balances were as follows at the
beginning and end of the year:
Beg balances
End balances
Raw Materials
$14,000
$22,000
Work In Process
$27,000
$9,000
Finished Goods
$62,000
$77,000
The company applies overhead to jobs using a predetermined overhead
rate based on machine-hours. At the beginning of the year, the
company estimated that it would work 33,000 machine-hours and incur
$231,000 in manufacturing overhead cost. The following...
Babb Company is a manufacturing firm that uses job-order costing. The company's inventory balances were as...
Babb Company is a manufacturing firm that uses job-order
costing. The company's inventory balances were as follows at the
beginning and end of the year:
Beginning
Balance
Ending
Balance
Raw materials
$
11,100
$
16,000
Work in process
$
32,300
$
14,700
Finished goods
$
106,000
$
123,000
The company applies overhead to jobs using a predetermined
overhead rate based on machine-hours. At the beginning of the year,
the company estimated that it would work 17,900 machine-hours and
incur...
Seton Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as...
Seton Corporation is a manufacturing firm that uses
job-order costing. The company's inventory balances were as follows
at the beginning and end of the year: Beginning Balance Ending
Balance Raw materials $ 14,000 $ 22,000 Work in process $ 27,000 $
9,000 Finished Goods $ 62,000 $ 77,000 The company applies overhead
to jobs using a predetermined overhead rate based on machine-hours.
At the beginning of the year, the company estimated that it would
work 33,000 machine-hours and incur $231,000...
Seton Corporation is a manufacturing firm that uses job-order costing. The company's inventory balances were as...
Seton Corporation is a manufacturing firm that uses
job-order costing. The company's inventory balances were as follows
at the beginning and end of the year: Beginning Balance Ending
Balance Raw materials $ 14,000 $ 22,000 Work in process $ 27,000 $
9,000 Finished Goods $ 62,000 $ 77,000 The company applies overhead
to jobs using a predetermined overhead rate based on machine-hours.
At the beginning of the year, the company estimated that it would
work 33,000 machine-hours and incur $231,000...
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