A trader has made a sale of R75,500 out of which cash sales amounted to R25,500. He showed trade receivables on 31-3-2020 at R25,500. Which concept is followed by him?
Q: 1. Explain why is it important to understand financial statements.
A: Hi student Since there are multiple questions, we will answer only first question.
Q: At the beginning of the current year , Flash Company had retained earnings of P4,000,000 . During…
A: Retained earnings are surplus left after paying all operating Expenses, taxes and dividends. It is…
Q: Francisco Company has 10 employees, each of whom earns $2,500 per month and is paid on the last day…
A: Introduction: Salary is a regular payment made by an employer to an employee based on the work and…
Q: On December 1, 2018, elsa started his business with a borrowed capital amounting to P 40,000 at a…
A: Return on capital is the return earned by a business entity from the capital invested by them which…
Q: On Ist January, 2019 they dissolved partnership. Their books at that date show the following : .2.…
A: Note: Hi! Thank you for the question As per the honor code, We’ll answer the first question since…
Q: The following information is available from Goodyear Company’s 2022 accounting records:…
A: COST OF GOODS SOLD IS THE TOTAL AMOUNT OF COST DIRECTLY RELATED TO PRODUCTION OF GOODS AND SERVICES.
Q: Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago…
A: Days' sales in inventory confirms how many days' sales are in ending inventory. Higher the number of…
Q: On January 1, 2019, Villanueva Company classified noncurrent assets as held for sale that had a…
A: Here discuss about the fact to use the non current assets which are held for use and not use for…
Q: EZ-Tax is a tax accounting practice with partners and staff members. Each billable hour of partner…
A: The sales price variance is the difference between the estimated /standard price and the actual…
Q: Utilize the weighted average method (for both of the following situations) to determine the…
A: The equivalent units are calculated as the number of units to be completed during the period.
Q: Determine the consolidated balances which Peris would present on their consolidated balance sheet…
A: When there are two companies, in which one company acquires other company then consolidated…
Q: The cost to operate a clothes dryer for a year is $80.25. If the rate for electrical energy is…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: Calculate the missing values for each unique company. (Enter your ROI and Profit Margin percentage…
A: ROI = Profit margin * investment turnover Profit margin = ROI / investment t urnover Investment…
Q: On 1 January 20x2, Company A issued a convertible bond with principal amount of USD200,000, with…
A: When bonds are issued at a price above it's par value, it is called a Premium Bond.
Q: Otto Company borrows money on January 1 and promises to pay it back in four semiannual payments of…
A: Introduction: The concept of present value implies that money today is worth more than money…
Q: Mateo, sole proprietor reported the following changes during the year from his business: Increase…
A: Income for the Year = Increase in Total equity - Additional investment during the year + Drawings…
Q: Alpha Security Ltd commenced operations on 1 July 2021. By the end of the first year of operations,…
A: Provision for doubtful debts account is a provision created for those customers, whose receipt is…
Q: A die-cutting machine was purchased three years ago for $450,000. The useful life of the equipment…
A: Calculation of after tax cash inflow on sale of old machine: Cost of old machine…
Q: PV of DBO – Jan. 1, 20x1 2,000,000 FVPA– Jan.1, 20x1 1,800,000 PV of DBO – Dec. 31, 20x1 2,900,000…
A: An cost is the decrease in asset value as it is used to produce income. If the asset will be…
Q: Kohler Corporation reports the following components of stockholders’ equity at December 31, 2018.…
A: At the time of purchase of own stock by the company, treasury stock account is debited with the cost…
Q: Suppose Lion Cage Multinational floated 5000 bonds on January 1, 2020 with a par value of 1500 at…
A: An investor's obligation to a borrower is represented by a bond, which is a structured security…
Q: What are the similarities and differences between a limited company and a sole trader's statement of…
A: Organization- The organization is the process of identifying and gathering work to be done,…
Q: Prepare the Statement of Comprehensive Income using the multi-step format. Beautiful Life…
A: Introduction Statement of comprehensive income gives details about all revenue ,income expense or…
Q: We assume that we have a secured a loan of $10,000 from a bank which will be paid in one year. The…
A: Loan: The duration of a loan, or the amount of time it takes for a loan to be repaid in full when…
Q: What types of dividend provide tax saving most? 1- cash dividend 2- Share dividend 3- Orher…
A: A dividend is a portion of a company's value distributed by the board of directors. Dividends are…
Q: Question 1 Use the following information for Questions 1 a) and 1 b): a) At the beginning of the…
A:
Q: rts. Relevant revenues: None. Sunk costs: S4,000 for software. Opportunity costs: $4,000. rts.…
A: Relevant cost are those cost that would impact decision making and would be affected by it Sunk…
Q: Discuss your insights about the FMEA
A: FMEA: Failure Modes and Effects Analysis (FMEA) is a method that is both systematic and proactive,…
Q: d. What is the Year-1 imputed interest expense? Do not round intermediate calculations. Round your…
A: As Given that (HPB) Company need a $80,000 compressed air. Although the compressor's economic…
Q: The following information applies to the questions displayed below.] Simon Company’s year-end…
A: Financial ratios help to summarise the accounting data, so that the information can be used by the…
Q: 3) The following payroll information relates to Jones Company. Fica Rate 6.2% on the first $117,000…
A: Introduction After payroll register is prepared, entry for totals of each payroll period is made to…
Q: The following data were provided by the accountants of the Home Office and Branch for the year ended…
A: Disclaimer: We are solving 3 sub-parts, if you want to resolve it further, please resubmit it with…
Q: Net unrealized loss on available for sale securities (investment at FVTOCI) 20,000 Retained…
A: Total shareholders' equity A company's shareholders' equity can be calculated by subtracting total…
Q: BCC has received a request from a school board for 200 computers. Using the full-cost criteria and…
A: Full cost method is the method in which the company takes into consideration full costs which are…
Q: nd for a
A: In this question, we have to find out the elasticity of demand.
Q: dord, Inc., expects to sel 16,000 ceramic vases for $21.00 each. Direct materials costs are $2.00,…
A: The production budget is prepared to estimate the number of units to be produced during the period.
Q: Mr. Kamau started his business on 1 January 2016 with £35,000 in a bank account. Unfortunately he…
A: A profit and loss statement summarizes the sales, expenses, profits, and losses of a corporation.…
Q: 11. Ace Company had a pretax accounting income of P5,000,000 for its first year of operations. The…
A: Taxable income is the one which is computed after deducting all the expenses from the revenue and…
Q: Birdyblue Limited is a large manufacturing company that has three production departments…
A: In activity based costing overheads are allocated based on the various activities involved.…
Q: 7. Using the following table containing the dates of purchases and payments to determine the average…
A: Balance Remained at Beginning For Period Weighted Balance Purchase Paid Balance Remained at…
Q: Lenore, Inc. declared a cash dividend of $90,000 in 2021 when the following stocks were outstanding:…
A: Dividend paid to Common stockholder group = Total dividend paid - Dividend paid to Preferred…
Q: Crane Company sells one product. Presented below is information for January for Crane Company.…
A: Using periodic system, the cost of goods sold is not recorded regularly. It is estimated and…
Q: Fill in the blanks: Blackknight Corp. purchased the following held for trading investments during…
A: As per given information in the question: Cost of ABC Shares= P900000 Cost of DEF Shares= P1000000…
Q: X and Y share income of their partnership in a 2:3 ratio. X and Y receive salaries of $18,000…
A: Partnership refers to the contractual agreement among the partners who carry out the business…
Q: Problem 1. The ledger of COVID19 Co. as of December 31, 2019 includes the followi Assets Cash 10,000…
A: A current asset is a stability item that is either cash, a cash equivalent, or may be turned into…
Q: PLEASE ANSWER ASAP Problem No. 6 In conducting your audit of AACA Corporation, a company…
A:
Q: Manually journalize the following: a. Bank transfer from any bank to 1612CN amounting P30,000 b.…
A: Journal entries represent the activity of identifying and recording day-to-day business-related…
Q: Q1a. Allocate the service department costs to the two operating departments using the direct method.…
A:
Q: Simon Company’s year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago…
A: Formulas: Days' sales uncollected = 365 x Average Accounts receivable / Sales where, Average…
Q: Pert Lad has been trading for one year as at 31 December 2021 and during that year the company pad…
A: The accrued expenses are the expenses which are incurred but not paid yet.
Step by step
Solved in 2 steps
- a. Compute the current ratio for the current year. (Abbreviations used: STI = Short-term investments. Round your answer to two decimal places, X.XX.) Current ratio More Info a. Current ratio b. Cash ratio c. Acid-test ratio d. Inventory turnover e. Days' sales in inventory f. Days' sales in receivables g. Gross profit percentage Print Done Choose from any list or enter any number in the input fields a Financial Statements Balance Sheet: Cash Short-term Investments Net Accounts Receivables Merchandise Inventory Prepaid Expenses Total Current Assets Total Current Liabilities Income Statement: Net Credit Sales Cost of Goods Sold $ Current Year Preceding Year 15,000 $ 11,000 56,000 64,000 13,000 159,000 132,000 465,000 317,000 29,000 27,000 94,000 82,000 7,000 239,000 89,000Given the following data; TOTAL SALES OMR 250000 CASH SALES OMR 125000 SALES RETURN OMR 5000 OPENING SUNDRY DEBTORS OMR 20000 CLOSING SUNDRY DEBTORS OMR 10000What will be the Net credit sales? a.OMR 245000 b.OMR 200000 c.OMR 125000 d.OMR 120000Q L. From the following Trial Balance prepare Trading and Profit and Loss Account for the year ended 31 December, 2020 and Balance Sheet as on that date: Cr. (Rs.) Dr. (Rs.) 10,000 46,000 1,50,200 3,400 22,660 600 38,600 840 1,640 280 3,300 4,000 200 29,000 Drawings Stack on 01/01/2019 Purchases and Purchases Returns Cash in Hand Bank Balance Freehold Premises Trade Expenses Printing, stationery and Advertising Professional Charges Commission Received Investments as on 1" Jan. @ 10% Interest on above Sundry Debtors and Creditors Wages Salaries Capital Income Tax Discount allowed and received Sales Returns and Sales Bills Receivable /Bills Payable Office furniture Rent, Rates and Insurance Bad Debts Provisions Total Adjustments: 36,000 25,000 14,000 1,14,000 1,600 6,300 550 3.200 4,600 2,08,950 10,000 3,050 4,000 670 3.71,320 3,71,320 (a) Provide for wages Rs. 5,000. (b) Write Off 5%…
- A. Provide exercises. Here are sample questions: Current assets is PHP2,000, current liabilities is PHP3,500. What is current ratio? Inventory is PHP150. Accounts payable is PHP450. Cash and accounts receivable total PHP800. What is the current ratio? Quick ratio? If current ratio is 1.7, what is the total accounts receivable if cash is PHP20,000, inventory is PHP7,500, and accounts payable is PHP30,000. Cash is 30% of total current assets. If current ratio is 2.3, what is the new current ratio if total non-cash current assets grow by 50%? B. 1. compute the ratios of the sample companies and ask them to compare the three companies using the ratios computed. B. 2 what are the possible reason why the sample companies have different ratios. What could have possibly caused these differences? What are the implications? B. 3 How to interpret the liquidity ratios? B4. Which ratio is more relevant - quick ratio or current ratio? B 5. What other factors would a bank or supplier look into in…Refer to the following selected financial information from WorkFit Corporation. Compute the company's acid-test ratio. Cash Short-term investments Accounts receivable, net Merchandise inventory Prepaid expenses Current liabilities Multiple Choice O O O 2.76. 0.91. 1.10. 2.67. 1.63. $ 42,250 59,180 79,500 115,000 9,700 111,000Below is the financial information from thế comparative statements of Pahd ana Company. (In Thousands) PAND CO. EMIC CO. 2019 2018 2019 2018 Sales Cost of Goods Sold Selling expenses Net Income Р 3,400 1,700 1,000 P 700 P 4,400 2,300 1,500 P 600 P 5,300 3,100 1.500 P 700 P 4,900 2,100 1.900 P 900 Accounts receivable Inventory Fixed Assets Total Assets P 3,600 1,000 2,300 P6,500 P 1,900 1,900 1.000 P 4,800 P 500 1,000 Р3,100 2,000 2.000 P 7,100
- A. Provide exercises. Here are sample questions: • Current assets is PHP2,000, current liabilities is PHP3,500. What is current ratio? • Inventory is PHP150. Accounts payable is PHP450. Cash and accounts receivable total PHP800. What is the current ratio? Quick ratio? • If current ratio is 1.7, what is the total accounts reccivable if cash is PHP20,000, inventory is PHP7,500, and accounts payable is PHP30,000. • Cash is 30% of total current assets. If current ratio is 2.3, what is the new current ratio if total non-cash current assets grow by 50%? B. 1. compute the ratios of the sample companies and ask them to compare the three companies using the ratios computed. 2014 B. 2 what are the possible reason why the sample companies bave different ratios. What could have possibly caused these differences? What are the implications? B. 3 How to interpret the liquidity ratios? B 4. Which ratio is more relevant - quick ratio or current ratio? B 5. What other factors would a barık or supplier…Given the following data; TOTAL SALES OMR 250000 CASH SALES OMR 125000 SALES RETURN OMR 5000 OPENING SUNDRY DEBTORS OMR 20000 CLOSING SUNDRY DEBTORS OMR 10000 What will be the Debtors Turnover Ratio (DTR)? a.16 b.6 c.5 d.8Use the following information for the Quick Studies below. (Algo) [The following information applies to the questions displayed below.] Cash Accounts receivable Equipment, net Land Total assets QS 13-6 (Algo) Vertical analysis LO P2 Current Year $ 8,400 56,000 48,000 93,500 $ 205,900 Cash Accounts receivable Equipment, net Express the items in common-size percents. (Round your percentage answers to one decimal place.) Land Total assets Current Year % % % Prior Year $ 9,600 20,400 43,200 68,000 $ 141,200 % % Prior Year % % % %
- The "Sales discount" account will show up on which of the following financial statements? Statement of Cash Flows O Statement of Stockholders' Equity O Income Statement O Balance Sheet ASUS f4 f5 E3 f6 f7 f8 コ/東 f9 f10 f11 & 4 5 7 9. E Y U F G H. JK L V 00 R 因 图 %248. Compute the acid-test (quick ratio) ratio using the following data: highly liquid assets cash, AR, ST investment A) B) C) D) 1.15 1.24 1.33 1.86 Answer: B Cash Inventory Accounts Receivable Current ratio $115,000 105,000 55,000 2.00oped Dok H Int 0 ence [The following information applies to the questions displayed below] Forten Company's current year Income statement, comparative balance sheets, and additional Information follow. For the year. (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of Inventory are on credit, and (4) all debits to Accounts Payable reflect Sens cash payments for Inventory. FORTEN COMPANY Income Statement For Current Year Ended December 31 Sales Cost of goods sold Gross profit Operating expenses (excluding depreciation) Depreciation expense Other gains (losses) Loss on sale of equipment Income before taxes Income taxes expense Net income Assets Cash FORTEN COMPANY Comparative Balance Sheets December 31 Accounts receivable Inventory Prepaid expenses Total current assets Equipment Accumulated depreciation-Equipment Total assets Liabilities and Equity Accounts payable Long-term notes payable Total liabilities…