Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Corporate Finance Expert

Consider each of the following independent situations.

A. The Purchasing Department has five purchasing agents that work full time and are paid a salary of $35,000 per year. Each purchase order takes about 90 minutes, and requires approximately $5 of forms and supplies. Each order also requires, on average, about 45 minutes of telephone or Internet time to check with potential suppliers. The company pays a flat monthly rate for telephone and Internet services. The depreciation on office equipment for the Purchasing Department is $3,000 per month.

B. El Munchies, a taco stand near the college, hires counter staff at the rate of $7.50 per hour. Each staff member knows that the hours vary each week depending on the amount of business that El Munchies expects. Food is purchased from a restaurant supplier on an "as needed" basis; there is about 4 days of perishable goods inventory on hand, and a month's worth of nonperishable goods (e.g., napkins, paper cups) in inventory. Utilities are paid on a monthly basis for the previous month's usage. El Munchies has a three-year lease on the building and parking lot. Each month, the restaurant buys newspaper and radio advertising for the coming month.

C. Jared Benning runs a lawn mowing service during the summers to help pay for his college expenses. Jared bought a power mower (it runs on gasoline and must have its oil changed monthly due to the volume of lawns mowed) and a gaspowered weed eater for trimming along the edges. Jared buys a season's worth of lawn mower oil at the beginning of summer because he can get a discount if he buys in bulk. From time to time, Jared has a commitment elsewhere. When that happens, a friend of his mows the yards that day; he and the friend have agree on a per yard fee for this. Jared owns a used pickup truck and uses it to haul his equipment from job to job.

Required

Classify the resources in each of the above situations as flexible or committed. If the resource is committed, determine whether it is committed for the short term or committed for multiple periods.

Corporate Finance, Finance

  • Category:- Corporate Finance
  • Reference No.:- M91619554

Have any Question?


Related Questions in Corporate Finance

Questions -1 this week we discuss capital budgeting methods

Questions - 1. This week we discuss capital budgeting methods and process. Could you apply the knowledge your learn this week to make better decisions in your personal life or professional duties? Please elaborate your a ...

Discussion question -what have you learned about financial

Discussion Question - What have you learned about financial derivatives? What concepts learned do you plan to utilize in your current job, career, and personal life?

Question - international foods have the following capital

Question - International Foods have the following capital structure: Book Value (sh.) Market Value(sh) Equity capital (2.5 million shares of sh. 10 par) 25,000,000 45,000,000 Preference capital (50,000 shares of sh,100 p ...

Question - business performanceassess how business

Question - Business Performance Assess how Business Performance is measured, financially and non-financially, in your organization* and analyze its business performance. Organization is InterContinental Hotels Group (IHG ...

Assignment -part a - saturn petcare australia and new

Assignment - Part A - Saturn Petcare Australia and New Zealand is Australia's largest manufacturer of pet care products. Saturn have been part of the Australian and New Zealand pet care landscape since opening their firs ...

Graph an event study relationshipthe event in consideration

Graph an event study relationship. The event in consideration here is: "Environmental performance, being green, clean-tech, corporate sustainability, and many other "green" issues are on the forefront of the current econ ...

Question - given1 under armour annual report - you will

Question - Given 1. Under Armour Annual Report - You will find the financial statements in this annual report. 2. Nike Annual Report - You will find the financial statements in the 10-K. Instructions for final project: 1 ...

Assignment - npv and real option valuationproposed project

Assignment - NPV and real option valuation Proposed project: Alchemy Mines is considering an investment in the rights to a silver mine. Initial investment - The owner of the mine will sell the rights to Alchemy Mines at ...

Question - develop a forecast model for sales through

Question - Develop a forecast model for sales through operating income. Create the forecast in Excel. In a Word document, describe the set of assumptions (ratios) you used, and explain how you justify them. Attachment:- ...

Bank financial management assignment -the question - the

BANK FINANCIAL MANAGEMENT ASSIGNMENT - The Question - The Balance Sheet for Commercial Banking Company of Australia Limited (CBC) as at 28 February 2018 is shown below as Table 1. CBC is an Authorised Depository Institut ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As