Diamond Line Is a Distributor of Everything a Florist Needs

question 116

Multiple Choice

Diamond Line is a distributor of everything a florist needs to create a beautiful arrangement except the flowers.It sells to 10,000 flower and gift shops and 5,000 supermarkets nationwide.Each florist is called on four times a month and each supermarket is called on twice a month.Assume a 52-week calendar year and that each salesperson takes a four-week vacation.A sales call to a florist takes one hour,and a sales call to a supermarket takes two hours of selling time.An average salesperson spends 1,000 hours per year making sales calls.Calculate the number of salespeople Diamond Line needs to cover its account base.The number of salespeople is __________.

• A)15
• B)52
• C)240
• D)480
• E)720

Know the significance of retention (plowback) ratio in financial growth and planning.

Comprehend the role of dividend policy in financial management.

Analyze the effects of financial ratios, such as fixed asset turnover and return on assets, on a firm's performance.

Grasp the concept of external financing needs and how firm capacity utilization affects it.

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Definitions:

Intangible Assets

Non-physical assets owned by a company, such as patents, trademarks, goodwill, and copyrights, that are valuable but lack physical substance.

Common Stock

A type of security that represents ownership in a corporation, giving shareholders voting rights and a share in the company's profits through dividends.

Noncash Investing

Investing activities that do not involve direct cash transactions, such as acquiring assets through exchange or issuing stock for assets.

Free Cash Flow

The amount of cash a company generates after accounting for capital expenditures required to maintain or expand its asset base.