Use the Following Information for the Next 5 Questions

question 3

Multiple Choice

Use the following information for the next 5 questions.
Planning Systems, Inc. has forecast the following unit sales and production for the next year, by quarter: A finished unit requires one unit of material A and two units of material B. There should be enough material on hand at the end of each quarter to meet 20% of the next quarter's production needs. There are no work-in-process inventories.
-What is ending finished goods inventory for quarter 2?

• A) 50
• B) 70
• C) 80
• D) 100

Calculate and interpret financial ratios such as times interest earned ratio, equity multiplier, cash coverage ratio, return on equity, profit margin, quick ratio, current ratio, net working capital turnover, and price earnings growth ratio.

Apply the Du Pont Identity Method for analyzing the components affecting a firm's return on equity.

Understand the relationship between financial performance measures such as debt-equity ratio, return on assets, and return on equity.

Determine the impact of inventory turnover and receivables turnover on the firm's operational efficiency.

---

Definitions:

Commons Dilemma

A situation in which individuals or groups must balance their own interests with the public good, often involving shared resources.

Social Loafing

The tendency for individuals to reduce their effort when working in a group compared to when working alone.

Bystander Effect

A social psychological phenomenon where people are less likely to offer help to a victim when other people are present.

Social Trap

A situation where individuals or groups are unable to cooperate, resulting in negative outcomes for all involved due to conflicting interests.