An Automobile Emissions Testing Center Has Six (6) Inspectors and Tests

question 83

Essay

An automobile emissions testing center has six (6) inspectors and tests 50 autos per hour.Each inspector can inspect twelve (12) autos per hour.If the center wants a utilization of 90%, how many inspectors are required?

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Definitions:

Operating Activities

Cash flows directly related to the production and delivery of a company's goods and services.

Direct Method

A method of reporting the cash flows from operating activities as the difference between the operating cash receipts and the operating cash payments.

Indirect Method

A method of reporting the cash flows from operating activities as the net income from operations adjusted for all deferrals of past cash receipts and payments and all accruals of expected future cash receipts and payments.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value.