Answer:
$62,400
Explanation:
Assets are Economic resources controlled by the entity as a result of past events from which cash is expected to flow into the business.
Assets include the following Amounts:
Cash from Bank Note $20,000
Cash from Stock Issues $40,000
Supplies Inventory $4,000
Payment for Supplies ($1,600)
Total Available Assets $62,400
Answer: 8.39%
Explanation:
Margin = Net Income/ Sales
Net income for the company including the new investment:
= 864,000 + (Sales * Contribution margin ratio - Fixed costs)
= 864,000 + (4,200,000 * 30% - 966,000)
= $1,158,000
The combined sales for the company is:
= 9,600,000 + 4,200,000
= $13,800,000
Combined margin:
= 1,158,000 / 13,800,000
= 8.39%
Answer:
Receivables turnover ratio = 5
Explanation:
Receivables turnover ratio = Net Credit Sales / Average accounts receivable
Receivables turnover ratio = $100,000/$20,000
Receivables turnover ratio = 5
Average accounts receivable = (Beginning Account Receivable + Ending Account Receivable) /2
Average accounts receivable = ($15,000+$25,00)/2
Average accounts receivable = $40,000/2
Average accounts receivable = $20,000
Answer:
Provide information about the reporting entity that is useful to present and potential equity investors, lenders, and other creditors.
Explanation:
Financial reporting refers to the presentation and disclosure of financial information of an entity to the public, investors, lenders and other stakeholder.
Financial reporting is carried out by reporting financial statements (balance sheet, income statements), statement of cash flows and other relevant/necessary disclosures, notes as required by law or statute or which are essential for better comprehension of such financial information.
Such information helps lenders to know the financial health of the entity, helps investors to decide whether it would be beneficial to invest in the entity, assures government of the compliance of laws by the entity, etc.
