Answer:
$37,000
Explanation:
The computation of the bad debt expense is shown below:
= Amount estimated as uncollectible + written off amount - credit balance of allowance for bad debts
= $28,000 + $15,000 - $6,000
= $37,000
We simply applied the above formula to determine the bad debt expense. Hence, all other information which is given is not relevant therefore, ignored it
Answer:
$308,750
Explanation:
Current ratio = Current asset / Current liabilities
To get the short term debt increase, to the value of current assets and current liabilities, an amount must be added whereas the result must be 2.2
1,522,500 + y / 525,000 + y = 2.2
1,522,500 + y = 2.2 × (525,000 + y)
1,525,500 + y = 1,155,000 + 2.2y
1,525,500 - 1,155,000 = 2.2y - y
370,500 = 1.2y
y = 370,500 / 1.2
y = 308,750
It therefore means that the maximum amount that should be borrowed to purchase the inventory is $308,750
Answer:
d. candor
Explanation:
Candor is the the quality of being honest and open when interacting with others. Candor is also referred to as bluntness or frankness. By informing customers that she will revert to their queries following consultation with the store manager, Susan exhibits candor.
Answer and Explanation:
Revenue $160,000
Rental Costs $30,000
Variable Costs $50,000
Depreciation $10,000
Profit before tax $70,000
Tax(35%) $24,500
Net Income $45,500
Operating cash flow
a) Dollars in minus dollars out
Revenue ? rental costs ? variable costs ? taxes = $160000 -$30000-$50000-$24,500 = $55,500
b) Adjusted accounting profits
Operating cash flow = Net income + depreciation = $45,500 + $10,000 = $55,500
c) Add back depreciation tax shield
Operating cash flow = [(Revenue ? rental costs ? variable costs) × (1 ? 0.35)] + (depreciation × 0.35)]
= ($160,000-$30000-$50,000)*0.65 + $10,000*0.35 = $55,500
Yes, the above approaches result in the same value for cash flow
Answer:
a. Sales for November = $192,666.67
b. Sales for December = $312,400,00
c. Total cash collections are as follows:
January = $200,580
February = $201,360
March = $191,750
Explanation:
a. Compute the sales for November.
Sales for November = (Accounts receivable balance at the end of the previous quarter - Uncollected sales from December) / Collection rate two months after the sale = ($107,000 - $78,100) / 15% = $192,666.67
b. Compute the sales for December.
Sales for December = Uncollected sales from December / (Collection rate one months after the sale + Collection rate two months after the sale) = $78,100 / (10% + 15%) = $312,400,00
c. Compute the cash collections from sales for each month from January through March.
Note: See the attached excel file for the schedule of cash collections from sales for each month from January through March.
From the attached excel file, total cash collections are as follows:
January = $200,580
February = $201,360
March = $191,750
