b. minimizing the cost of shipping goods from the plant to the store
If we were to devise a linear program for this case, the most likely objective function would be to minimize the cost of shipping from the plants to the stores, because this is a key aspect to the operation since it can become a costly bottleneck.
While there are three plants, and three stores, this does not mean that costs will be optimized if the same number of goods and produced in each plant, and transported from each plant to a designated store. In fact, it is likely that each plant produces a different amount of goods, which further complicates the problem.
For this reason, it is necessary to find the best combination of shipped goods, from each plant, to each store.
Answer & Explanation: Most balance sheets are arranged according to this equation:
Assets = Liabilities + Shareholders’ Equity
The equation above includes three broad buckets, or categories, of value which must be accounted for:
An asset is anything a company owns which holds some amount of quantifiable value, meaning that it could be liquidated and turned to cash. They are the goods and resources owned by the company.
Assets can be further broken down into current assets and noncurrent assets.
- Current assets are typically what a company expects to convert into cash within a year’s time, such as cash and cash equivalents, prepaid expenses, inventory, marketable securities, and accounts receivable. - Noncurrent assets are long-term investments that a company does not expect to convert into cash in the short term, such as land, equipment, patents, trademarks, and intellectual property.
A liability is anything a company or organization owes to a debtor. This may refer to payroll expenses, rent and utility payments, debt payments, money owed to suppliers, taxes, or bonds payable.
As with assets, liabilities can be classified as either current liabilities or noncurrent liabilities.
- Current liabilities are typically those due within one year, which may include accounts payable and other accrued expenses. - Noncurrent liabilities are typically those that a company doesn’t expect to repay within one year. They are usually long-term obligations, such as leases, bonds payable, or loans.
3. Shareholders’ Equity
Shareholders’ equity refers generally to the net worth of a company, and reflects the amount of money that would be left over if all assets were sold and liabilities paid. Shareholders’ equity belongs to the shareholders, whether they be private or public owners.
Just as assets must equal liabilities plus shareholders’ equity, shareholders’ equity can be depicted by this equation:
Explanation: When remeasurement is done based on the temporal method of conversion, converts foreign currency amounts to reporting currency amounts using different exchange rates for different accounts, it is done base on "Monetary and non monetary* basis.
When we say Monetary it means cash value that will most likely be received when liquidated, like monetary assets having a specific cash value when liquidated. Non-monetary is when the cash value is not fixed and can keep changing as time goes on, like in non monetary assets (assets whom specific cash value that can be received is not fixed and can keep changing as time goes no).