A Car Dealer Is Trying to Reduce the Number of Days

question 75

Essay

A car dealer is trying to reduce the number of days of inventory held at any given time on the lot. Assume that he projects the daily sales rate as the last two months averaged. Assume that the monthly sales rate for August was 12 cars/day, September was 14 cars/day, October was 12 cars/day, and November was 8 cars/day. Given an inventory of 500 cars at the start of November and 400 at the start of December, determine the number of days of inventory on hand at the start of November and December (also assume each month has EXACTLY 30 days of sales).

Understand how transactions are recorded in financial statements.

Comprehend the order and grouping of balance sheet accounts.

Recognize the treatment of cash transactions in accounting.

Understand the basic principles of debits and credits in accounting.

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Definitions:

Accommodations

Accommodations are adjustments or modifications provided to individuals with disabilities or special needs to enable them to participate fully in an activity or setting, such as in testing or in the workplace.

Modifications

Adjustments or changes made to environments, tasks, or procedures to enable individuals to participate fully.

Standardization

The process of establishing uniform procedures for using an assessment so that the observation, administration, equipment, materials, and scoring rules remain the same for all who are administered the test.

Cognitive Functioning

The level at which the brain is able to manage and use information, including memory, awareness, reasoning, and decision-making skills.