Answer: See explanation
Explanation:
a. Sharrod's deductible loss.
= Beginning stock + Long term capital gain - Cash distribution
= $55000 + $8250 - $33000
= $30250
b. Sharrod's suspended loss.
Beginning stock + Long term capital gain - Ordinary loss - Cash distribution
= $55000 + $8250 - $33,275 - $33000
= -$3025
c. Sharrod's new basis in the Kaiwan stock.
Sharrod's new basis in the Kaiwan stock is 0.
Here are the comparative income statements of Ayayai Corp..
AYAYAI CORP.
Comparative Income Statement For the Years Ended December 31
2017 2016
Net sales $632,600 $521,900
Cost of goods sold 463,600 410,400
Gross Profit 169,000 111,500
Operating expenses 79,300 47,200
Net income $ 89,700 S64,300
Prepare a horizontal analysis of the income statement data for Ayayal Corp, using 2019 as a base. (If amount and percentage are a decrease show the numbers as negative, eg -55,000, -20% or (55,000). (20%). Round percentages to 1 decimal place, eg. 12.1%.)
Answer:
Ayayai Corp.
Horizontal Analysis:
2020 Increase 2019
Net sales $632,600 $110,700 21.2% $521,900
Cost of goods sold 463,600 53,200 13.0% 410,400
Gross Profit 169,000 57,500 51.6% 111,500
Operating expenses 79,300 32,100 68.0% 47,200
Net income $ 89,700 25,400 39.5% $64,300
Explanation:
a) Data and Calculations:
AYAYAI CORP.
Comparative Income Statement For the Years Ended December 31
2020 2019
Net sales $632,600 $521,900
Cost of goods sold 463,600 410,400
Gross Profit 169,000 111,500
Operating expenses 79,300 47,200
Net income $ 89,700 $64,300
Percentage increase or decrease = (Increase/Decrease)/Base Year's Value
RKJ Company has provided the following: 100,000 shares of $5 par value common stock are authorized 66,000 shares were issued 61,000 shares are outstanding. Which of the following statements is correct based only on the above facts?
A) Additional-paid in capital is reported at $112,000 on the balance sheet.
B) Treasury stock is reported at $35,000 on the balance sheet.
C) Common stock is reported at $462,000 on the balance sheet.
D) Common stock is reported at $330,000 on the balance sheet.
Answer: D) Common stock is reported at $330,000 on the balance sheet.
Explanation:
The value of the common stock in the balance sheet is calculated by:
= Shares issued * Par value
= 66,000 * 5
= $330,000
If the shares were sold for higher than the par value, the excess amount would go the Additional Paid-In capital.
A person states , The $100 billion program passed by Congress last week benefits thousands of people . " What
Answer:
dasdjkasndknajs
Explanation:
jknasdjkasndjkasnd
Super-Tees Company plans to sell 12,000 T-shirts at $16 each in the coming year. Product costs include: Direct materials per T-shirt $5.75 Direct labor per T-shirt $1.25 Variable overhead per T-shirt $0.60 Total fixed factory overhead $43,000 Variable selling expense is the redemption of a coupon, which averages $0.80 per T-shirt; fixed selling and administrative expenses total $19,000.
Required:
1. Calculate the following values Round dollar amounts to the nearest cent and round ratio values to three decimal places
a. Variable product cost per unit
b. Total variable cost per unit
c. Contribution margin per unit
d. Contribution margin ratio
e. Total fixed expense for the year ).
2. Prepare a contribution-margin-based income statement for Super- Tees Company for the coming year 1f required, round your per unit answers to the nearest cent Super-Tees Company Contribution-Hargin-Based Operating Income Statement For the Coming Year Per Unt
Answer: See explanation
Explanation:
1a. Variable product cost per unit = 5.75 + 1.25 + 0.60 = 7.60
b. Total variable cost per unit = 5.75 + 1.25 + 0.60 + 0.80 = 8.40
c. Contribution margin per unit = Selling price - Total Variable cost per unit
= 16 - 8.40
= 7.60
d. Contribution margin ratio = (7.6/16) × 100 = 47.5
e. Total fixed expense for the year = 43000 + 19000 = 62000
2. Price per unit. Total
Sales 16. 192000
Less: variable cost 8.40. (100800)
Less: cont. marg per unit (62000)
Net operating Income = 29200
On July 31, 2020, Vaughn Company had a cash balance per books of $6,132.05. The statement from Dakota State Bank on that date showed a balance of $7,748.15. A comparison of the bank statement with the Cash account revealed the following facts.
1. The bank service charge for July was $25.
2. The bank collected $1,720 for Keeds Company through electronic funds transfer.
3. The July 31 receipts of $1,297.50 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31.
4. Company check No. 2480 issued to L. Taylor, a creditor, for $391 that cleared the bank in July was incorrectly entered as a cash payment on July 10 for $319.
5. Checks outstanding on July 31 totaled $1,866.60.
6. On July 31, the bank statement showed an NSF charge of $576 for a check received by the company from W. Krueger, a customer, on account.
Required:
Prepare the bank reconciliation as of July 31.
Answer and Explanation:
The preparation of the bank reconciliation as of July 31 is presented below;
Cash balance as per bank statement $7,748.15
Add: deposit in transit $1,297.50
Less: outstanding checks $1,866.60
Adjusted cash balance per bank $7,179.05
Cash balance as per books $6,132.05
Add: electronic fund transfer received $1,720
Less: error ($391 - $319) -$72
Less: service charges - $25
Less: NSF charges - $576
Adjusted bank balance per books $7,179.05
____ communication occurs when the downstream throughput is higher than the upstream throughput. in
Answer:
asymmetrical communications
Explanation:
The asymmetric or non-symmetrical means to any system where the speed of the data or the quantity varies in one direction if we compared with the other type of direction
Also in this the downstream would be more than the upstream throughput in
Therefore the above represent the answer
On September 11, 2016, Home Store sells a mower for $550 cash with a one-year warranty that covers parts. Warranty expense is estimated at 7% of sales. On July 24, 2017, the mower is brought in for repairs covered under the warranty requiring $39 in materials taken from the Repair Parts Inventory.
Prepare the September 11, 2016, entry to record the mower sale, and the July 24, 2017, entry to record the warranty repairs. (Round your answers to 2 decimal places.)
1. Record the mower sales.
2. Record the estimated warranty expense.
3. Record the cost of warranty repairs.
Answer:
2
Explanation:
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Select the correct answer.
According to Peter Drucker, which definition best describes a good entrepreneur?
A.
one who always invents something life altering or ground-breaking
B.
one who always searches for a change, responds to it, and exploits it as an opportunity
C.
one who manages to earn large profits using ethical or unethical business practices
D.
one who ensures availability of his business’s products or services regardless of their quality
Answer:
B(one who always searches for a change responds to it and exploits it
Explanation:
I just took the test
Answer:
B
Explanation:
Plato/edmentum
Economics question please help :))
Answer:
c 8 bushes of wheat
Explanation:
A common stock just paid a dividend (D0) of $3.35 per share. Dividends are expected to rise at the rate of 10% per year forever. If the interest rate on this stock is 14% per year, what will the price of this stock be in Year 36?
A. $0.28
B. $12.56
C. $77.96
D. $388.26
E. $1,404.64
Teal Mountain Industries produces a product that requires 2.6 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.3 pounds and 0.1 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $0.10 per pound, and receiving and handling costs are $0.07 per pound. The hourly wage rate is $12.00.00 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are $1.20 per hour, and fringe benefits average $2.40 per hour. Standard production time is 2.5 hour per unit, and the allowance for rest periods and setup is 0.1 hours and 0.2 hours, respectively. The standard direct materials price per pound is:______.
Answer:
$2.127.
Explanation:
According to the scenario, computation of the given data are as follows,
Purchase price per pound = $2
Freight (Add) = $0.10
Handling cost (Add) = $0.07
Total cost = $2.17
Discount (Less) = (2% × $2.17) = $0.043
Direct material price = $2.127
Hence, standard direct materials price per pound is $2.127.
You have been asked to estimate the market value of an income-producing property. The table below provides 5 years of projected cash flows for the property. Use the discounted cash flow approach to income valuation to calculate the market value. Assume that you sell the property at the end of year 5 and that the net proceeds from the sale are $5.0 million. Also assume that the discount rate is 7.5%.
Year 1 Year 2 Year 3 Year 4 Year 5
PGI $750,000 $780,000 $811,200 $843648 $877394
EGI $627500 $663000 $717,101 $689,520 $745785
NOI $318715 $331,500 $334,760 $358,550 $372,892
a. $4.18 million
b. $6.11 million
c. $4.12 million
d. $4.40 million
If we will assume that that the discount rate is 7.5%. then the answer is $4.18 million.
What is discount rate?The discount rate of return applied in corporate finance to reduce future cash flows to their present value is known as a discount rate. This rate is commonly a company's Weighted Average Cost of Capital (WACC), needed rate of return, or the minimum rate that investors hope to attain in order to assess the risk of the investment.
Seven annual free cash flow are received from the investment, each worth $100. An analyst uses a five percent hurdle rate to evaluate the investment's net present value, arriving with a value of $578.64. This contrasts with a whole cash flow of $700 that is not discounted.
Shareholders are essentially saying, "I don't care if I get $578.64 at once and today or $100 a year for 7 years." This claim takes into consideration the investor's perception of the investment's risk profile and a multiplier effect that indicates the earning potential on other investments.
To learn more about discount rate here
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Splish Brothers Inc. gathered the following reconciling information in preparing its August bank reconciliation:______.
Cash balance per books, 8/31 $33600 Deposits in transit 1400 Notes receivable and interest collected by bank 8200 Bank charge for check printing 190 Outstanding checks 19200 NSF check 1630
The adjusted cash balance per books on August 31 is:_______.
a. $38580.
b. $22040.
c. $23580
d. $39980.
Answer:
d. $39,980
Explanation:
Given the above information, the adjusted cash balance per books on August 31
= Cash opening + Collection by bank - Bank charge check printing - NSF check
The next step is to fix in the values as given above.
= $33,600 + $8,200 - $190 - $1,630
= $39,980
Therefore, the adjusted cash balance per books on August 31 is $39,980
MARIN INC. Income Statement For the Year Ended December 31, 2020
Sales revenue $425,500
Cost of goods sold 240,400
Gross profit 185,100
Expenses (including $12,000 interest and $26,000 income taxes) 75,400
Net income $109,700
Additional information:
1. Common stock outstanding January 1, 2022, was 26,300 shares, and 36,100shares were outstanding at December 31, 2022.
2. The market price of Marin stock was $14 in 2022.
3. Cash dividends of $24,000 were paid, $3,600 of which were to preferred stockholders.
Compute the following measures for 2022:
a. Earnings per share
b. Price-earnings ratio
c. Payout ratio
d. Times interest earned
Answer:
MARIN INC.
a. Earnings per share = $106,100/36,100 = $2.94
b. Price-earnings ratio = $14/$2.94 = 4.76 times
c. Payout ratio = $20,400/$106,100 = 0.19
d. Times interest earned = EBIT/Interest expense
= ($185,100 - $37,400)/$12,000
= $147,700/$12,000
= 12.31 times
Explanation:
A) Data and Calculations:
MARIN INC. Income Statement For the Year Ended December 31, 2020
Sales revenue $425,500
Cost of goods sold 240,400
Gross profit 185,100
Expenses:
Operating expenses $37,400
Interest $12,000
Income taxes $26,000
Total expenses 75,400
Net income $109,700
Preferred stock dividends 3,600
Available to common stock $106,100
Additional information
1. Outstanding common stock:
January 1, 2022 = 26,300 shares
December 31, 2022 = 36,100 shares
Additional issues = 9,800 shares
2. Market price of stock = $14
3. Cash dividends:
Preferred stock $3,600
Common stock 20,400
Total dividends paid $24,000
Effect of accruals on the financial statements
Milea Inc. experienced the following events in 2016, its first year of operations:
1. Received $20,000 cash from the issue of common stock.
2. Performed services on account for $56,000.
3. Paid the utility expense of $2,500.
4. Collected $48,000 of the accounts receivable.
5. Recorded $10,000 of accrued salaries at the end of the year.
6. Paid a $2,000 cash dividend to the stockholders.
Required:
Record the events in general ledger accounts under an accounting equation.
Answer:
Assets = Liabilities + Stockholders’ Equity = $71,500
Explanation:
Note: See the attached excel file for how the events are recorded in general ledger accounts under an accounting equation.
From the attached excel file, we can obtain the following:
Assets = Total assets = $63,500 + $8,000 = $71,500
Liabilities = Total liabilities = $10,000
Stockholders’ Equity = Total Stockholders’ Equity = $20,000 + $41,500 = $61,500
Liabilities + Stockholders’ Equity = $10,000 + $61,500 = $71,500
Therefore, the accounting equation holds as follows:
Assets = Liabilities + Stockholders’ Equity = $71,500
FCIA deduction consists of
Using the center for gravity method, determine the optimal x-coordinate for a single facility location to serve the following 5 sites (R1-5) with the following given coordinates and daily demands. x* = []
F X Y W
R1 8 7 100
R2 2 4 220
R3 6 8 80
R4 4 7 180
R5 12 15 350
Answer:
7.139
Explanation:
From the given information:
By using the center of gravity method, we can calculate the optimal x-coordinate.
The center of gravity technique evaluates existing facilities, the distances and the length between them, and the amounts of products to be shipped when citing single facilities.
Center of gravity method can be expressed as:
[tex]X - coordinate = \dfrac{\sum X \times W}{\sum W}[/tex]
[tex]\implies \dfrac{(8 \times 100)+(2\times 220) + ( 6\times 80)+(4 \times 180) +(12\times 350)}{100+220+80+180+350}[/tex]
[tex]\implies \dfrac{(800)+(440) + ( 480)+(720) +(4200)}{930}[/tex]
[tex]\implies \dfrac{6640}{930}[/tex]
=7.139
Professional sales skills
how should the price quotation in your proposal be titled?
A. Investment
B. Price
C. Cost
D.Estimate
The following information is available for the XYZ Company for the month of July:
Static Budget Actual
Units 7,000 6,650
Sales revenue $60,000 $55,715
Variable manufacturing costs $15,000 $14,250
Fixed manufacturing costs $20,000 $17,000
Variable selling & administrative expense $10,000 $10,500
Fixed selling & administrative expense $15,000 $12,000
The total sales-volume variance for operating income for the month of July would be:__________
Answer:
XYZ Company
The total sales-volume variance for operating income for the month of July would be:__________
$3,765 Favorable
Explanation:
a) Data and Calculations:
Static Budget Actual
Units 7,000 6,650
Sales revenue $60,000 $55,715
Variable manufacturing costs $15,000 $14,250
Fixed manufacturing costs $20,000 $17,000
Variable selling & administrative exp. $10,000 $10,500
Fixed selling & administrative expense $15,000 $12,000
Flexible Budget Actual
Units 6,650 6,650
Sales revenue = $57,000($60,000/7,000 * 6,650) $55,715
Variable manufacturing costs = $14,300 ($15,000/7,000 * 6,650) $14,250
Fixed manufacturing costs $20,000 $17,000
Variable selling & administrative exp. =$9,500 ($10,000/7,000 * 6,650) $10,500
Fixed selling & administrative expense $15,000 $12,000
Flexible Budget Actual Variance
Units 6,650 6,650
Sales revenue $57,000 $55,715 $1,285 U
Variable manufacturing costs $14,300 $14,250 50 F
Fixed manufacturing costs $20,000 $17,000 3,000 F
Variable selling & administrative exp. $9,500 $10,500 1,000 U
Fixed selling & administrative expense $15,000 $12,000 3,000 F
Operating income ($1,800) $1,965 $3,765 F
On January 1, 2018, Stoops Entertainment purchases a building for $480,000, paying $110,000 down and borrowing the remaining $370,000, signing a 9%, 10-year mortgage. Installment payments of $4,687.00 are due at the end of each month, with the first payment due on January 31, 2018.
Required:
1. Record the purchase of the building on January 1, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2. Complete the first three rows of an amortization schedule. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)
3-a. Record the first monthly mortgage payment on January 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to 2 decimal places.)
3-b. How much of the first payment goes to interest expense and how much goes to reducing the carrying value of the loan? (Round your answers to 2 decimal places.)
what does the word utilities in business mean?
Answer:
Utility is a term in economics that refers to the total satisfaction received from consuming a good or service. ... The economic utility of a good or service is important to understand, because it directly influences the demand, and therefore price, of that good or service.
IN SIMPLE WORDS:
A utility is an important service such as water, electricity, or gas that is provided for everyone, and that everyone pays for. ... public utilities such as gas, electricity and phones.
Please mark as brainliest if answer is right
Have a great day, be safe and healthy
Thank u
XD
Answer
it means water gas or electricity
Explanation:
Utility has several meanings: In economics, it refers to the value for money that people derive from consuming a product or service. ... Value for money, in this context, means 'pleasure and satisfaction. In the world of business, it means a water, gas, or electricity company.
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Twilight Company uses the aging of accounts receivable method to estimate Bad Debt Expense. The balance of each account receivable is aged on the basis of three categories as follows: (1) 1-30 days old, (2) 31-90 days old, and (3) more than 90 days old. Based on experience, management has estimated what portion of receivables of a specific age will not be paid as follows: (1) 3%, (2) 14%, and (3) 37%, respectively. At December 31, 2019, the unadjusted credit balance in the Allowance for Doubtful Accounts was $270. The total Accounts Receivable in each age category were: (1) 1-30 days old, $63,000, (2) 31-90 days old, $12,000, and (3) more than 90 days old, $5,000.
Required:
a. Calculate the estimate of uncollectible accounts at December 31, 2019.
b. Prepare the appropriate adjusting entry dated December 31, 2019
Answer:
a. Acct. receivable % uncollectible Est. uncollectible
1-30 days old $63,000 3% $1,890
31-90 days old $12,000 14% $1,680
> 90 days old $5,000 37% $1,850
Total $5,420
b. Date General journal Debit Credit
Dec 31 Bad debts expenses $5,150
Allowance for doubtful accounts $5,150
($5,420 - $270)
Because of local practices and competitive benchmarking, a company chooses a polycentric pricing strategy, and, in the foreign market, sets a product price that is significantly lower than what it charges domestically. Which of the following is a significant risk of choosing such a strategy?
i. Creation of gray markets, or arbitrage opportunities
ii. Lowering of profit margins
iii. Violation of dumping rules
iv. Consumer confusion
a. i and ii
b. ii and iii
c. i, ii, and iii
d. i and iv
Answer:
c. i, ii, and iii
Explanation:
Given - Because of local practices and competitive benchmarking, a company chooses a polycentric pricing strategy, and, in the foreign market, sets a product price that is significantly lower than what it charges domestically.
To find - Which of the following is a significant risk of choosing such a strategy?
Solution -
The correct option is - c. i, ii, and iii
Reason -
Due to adoption of polycentric pricing strategy company is charging different prices for the same local product which is generally in favor of company to earn more profits.
With the adoption, there might be arbitrage profits arises due to fluctuation of foreign currency receipts and when it charging a significantly lower charges it may realize in lower revenue than the revenue if it had been selling in local market.
While charging less price in competitive market, company will be able to capture a large market outside which in turn result in higher orders and thereby results in violation of dumping rules, as there is prohibition to dump in bulk in any other country than the volume in domestic market.
3.
The distinction between a managerial position and a non
managerial position is
a) planning the work of others
b) coordinating the work of others
c) controlling the work of others
d) organizing the work of others
Answer:
c) controlling the work of others.
Explanation:
Marigold Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project Soup Project Nuts Initial investment $305000 $504000 Annual net income 30000 46000 Net annual cash inflow 110000 156000 Estimated useful life 5 years 6 years Salvage value 0 0 The company requires a 10% rate of return on all new investments. Present Value of an Annuity of 1 Periods 9% 10% 11% 12% 5 3.89 3.791 3.696 3.605 6 4.486 4.355 4.231 4.111
The net present value for Project Nuts is:_______.
a. $84000.
b. $679380.
c. $336316.
d. $175380.
Answer:
d. $175,380.
Explanation:
Net present value for Project Nuts = (Net annual cash inflow*PV of annuity at 10%, 6 period) - Initial investment
Net present value for Project Nuts = ($156000*4.355) - $504,000
Net present value for Project Nuts = $679,380 - $504,000
Net present value for Project Nuts = $175,380
Pharoah provides environmentally friendly lawn services for homeowners. Its operating costs are as follows.
Depreciation $1,500 per month
Advertising $450 per month
Insurance $3,330 per month
Weed and feed materials $20 per lawn
Direct labor $13 per lawn
Fuel $3 per lawn
Pharoah charges $80 per treatment for the average single-family lawn.
(a) Determine the company's break-even point in number of lawns serviced per month o per Break-even point lawns
(b) Determine the company's break even point in dollars.
Answer:
Results are below.
Explanation:
Giving the following information:
Advertising $450 per month
Insurance $3,330 per month
Total fixed costs= $3,780
Weed and feed materials $20 per lawn
Direct labor $13 per lawn
Fuel $3 per lawn
Total unitary varaible cost= $36
Selling price per unti= $80
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 3,780 / (80 - 36)
Break-even point in units= 86
Now, in dollars:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 3,780 / (44 / 80)
Break-even point (dollars)= $6,873
Peter Parker, CEO at Spdey Enterprises, finds his profits at $8,000,000 inadequate for his Web-Slinger business. His production manager, Mary Jane Watson, is insisting on an improved profit picture prior to an approval of a loan for new web-shooter manufacturing equipment. Mary Jane suggests to improve the profit line to $14,000,000 so Peter can obtain the necessary loan. The company's sales currently stands at $40,000,000 per year, its Cost of Supply Chain Purchases is $16,000,000 per year, its production costs are $10,000,000 per year, and it has fixed costs of $6,000,000 per year.
Mr. Parker has commissioned you to use a Sales Strategy and figure out the percentage improvement in Sales to achieve the desired profit? If successful, he will give you one of his brand new web-shooters right off the production line.
a. 14.29% increase in sales.
b. 57.14% increase in sales.
c. 42.86% increase in sales.
d. 71.43% increase in sales.
e. 28.57% increase in sales.
Answer:
Spdey Enterprises
The percentage improvement in Sales to achieve the desired profit is:
c. 42.86% increase in sales.
Explanation:
a) Data and Calculations:
Normal profit level = $8 million
Expected profit level = $14 million
Normal Expected
Sales per year $40,000,000 $57,142,857
Cost of purchases 16,000,000 22,857,143
Production costs 10,000,000 14,285,714
Variable costs 26,000,000 37,142,857
Total contribution $14,000,000 $20,000,000
Fixed costs 6,000,000 6,000,000
Profit level $8,000,000 $14,000,000
Expected Contribution = Expected profit level + Fixed Costs
Normal Contribution = 35% of Sales
Normal Variable costs = 65% (100% - 35%)
Expected Contribution = $20,000,000 = 35% of Sales
Therefore, Expected Sales = $57,142,857 ($20,000,000/35%)
Normal Sales = $40,000,000
Expected Sales = $57,142,857
Percentage increase = 42.86% ($57,142,857 - $40,000,000)/$40,000,000
Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions) for 2020 are presented below.
End of Year Beginning of Year
Cash and cash equivalents $750 $81
Accounts receivable (net) 2,060 1,810
Inventory 880 830
Other current assets 570 429
Total current assets $4,260 $3,150
Total current liabilities $2,060 $1,610
For the year, net credit sales were $8,258 million, cost of goods sold was $5,328 million, and net cash provided by operating activities was $1,251 million.
Required:
Compute the current ratio, current cash debt coverage, accounts receivable turnover, average collection period, inventory turnover, and days in inventory at the end of the current year.
Answer:
Nordstrom, Inc.
Current Ratio = Current assets/Current liabilities
= $4,260/ $2,060
= 2.1
Current cash debt coverage = Net Operating Cash/Current liabilities
= $1,251/$2,060
= 0.61
Accounts receivable turnover = Net Sales/Average Receivable
= $8,258/$1,935
= 4.27
Average collection period = 365/4.27
= 85.5 days
Inventory turnover = Cost of goods sold/Average inventory
= $5,328/$855
= 6.2 times
Days in inventory = 365/Inventory turnover
= 58.9 days
Explanation:
a) Data and Calculations:
End of Year Beginning of Year
Cash and cash equivalents $750 $81
Accounts receivable (net) 2,060 1,810
Inventory 880 830
Other current assets 570 429
Total current assets $4,260 $3,150
Total current liabilities $2,060 $1,610
Net credit sales = $8,258 million
Cost of goods sold = $5,328 million
Net operating cash = $1,251 million
Average receivables = $1,935 ($2,060 + $1,810)/2
Average inventory = $855 ($880 + $830)/2
A team member tells you that when his wife was diagnosed with a serious illness, he stole items from work and sold them, using money for her treatment. he has sice paid back the money taken, in ways that kept his theft secret. ethically, what should you do?
A. attempt to gather evidence to determine whether or not the theft in fact occurred.
B. report him to his manager
C. advice the team member to tell his manager
D. talk with a lawyer to see if this can be justified
Answer:
C
Explanation:
I would advice him to tell his manager what he has done
A comparative balance sheet and income statement is shown for Cruz, Inc.
CRUZ, INC. Comparative Balance Sheets December 31, 2013
2013 2012
Assets
Cash $94,800 $24,00
Accounts receivable, net 41,000 51,000
Inventory 85,800 95,800
Prepaid expenses 5,400 4,200
Furniture 109,000 119,000
Accum. depreciation- Furniture (17,000) (9,000)
Total assess $319,000 $285,000
Liabilities and Equity
Accounts payable $15,000 $21,000
Wages payable 9,000 5,000
Income taxes payable 1,400 2,600
Notes payable long-term 29,000 69,000
Common stock, $5 par value 229,000 179,000
Retained earnings 35,600 8,400
Total liabilities and equity $319,000 $285,000
CRUZ, INC. Income Statement For Year Ended December 31, 2013
Sales $488,000
Cost of goods sold 314,000
Gross profit 174,000
Operating expenses
Depreciation expense $37,600
Other expenses 89,100 126,700
Income before taxes 47,300
Income taxes expense 17,300
Net Income $30,000
Use the above balance sheet and income statement to prepare the cash provided used from operating activities section by direct method. Amounts deducted should be indicated with a minus sign.