Style division has the capacity to make 950,000 zippers per year, but due to a soft market, only plans to produce and sell 620,000 zippers next year. boot division currently buys zippers from an outside supplier for $3.50 each (the same price per unit that style receives for the 620,000 zippers it sells to external customers). if the divisions agree on a transfer price of $3.25 per zipper, then what is the financial advantage (or disadvantage) to the firm associated with internal trade? that is, by how much is quinn better off or worse off when boot division buys zippers from style division rather than buying zippers from the outside supplier?

If we know that a firm has a net profit margin of 4.6 %, total asset turnover of 0.62, and a financial leverage multiplier of 1.54, what is its roe? what is the advantage to using the dupont system to calculate roe over the direct calculation of earnings available for common stockholders divided by common stock equity?

Suppose your rich uncle gave you $50,000, which you plan to use for graduate school. you will make the investment now, you expect to earn an annual return of 6%, and you will make 4 equal annual withdrawals, beginning 1 year from today. under these conditions, how large would each withdrawal be so there would be no funds remaining in the account after the 4th?

Fanning books buys books and magazines directly from publishers and distributes them to grocery stores. the wholesaler expects to purchase the following inventory: april may june required purchases (on account) $ 111,000 $ 131,000 $ 143,000 fanning books accountant prepared the following schedule of cash payments for inventory purchases. fanning books suppliers require that 85 percent of purchases on account be paid in the month of purchase; the remaining 15 percent are paid in the month following the month of purchase. required complete the schedule of cash payments for inventory purchases by filling in the missing amounts. determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter.