Consider an Espresso Stand with a Single Barista

question 59

Multiple Choice

Consider an espresso stand with a single barista.Customers arrive to the stand at the rate of 28 per hour according to a Poisson distribution.Service times are exponentially distributed with a service rate of 35 customers per hour.The average number of customers waiting in line for service is

• A)4.0
• B)3.8
• C)3.5
• D)3.2

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Definitions:

Wages Payable

A liability account representing the amount of wages owed to employees for work done that has not yet been paid.

Indirect Method

An approach to assemble the cash flow statement by adjusting net income for fluctuations in balance sheet accounts to determine the cash flow originating from operations.

Operating Activities

The component of cash flow statement that reflects the cash generated or used by the core business operations.

Net Cash

The amount of cash available after accounting for cash inflows and outflows, indicating a company's liquidity.