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ELEN [110]
3 years ago
15

In its first year of operations, Wildhorse Co. recognized $33,700 in service revenue, $7,800 of which was on account and still o

utstanding at year-end. The remaining $25,900 was received in cash from customers. The company incurred operating expenses of $19,400. Of these expenses, $13,600 were paid in cash; $5,800 was still owed on account at year-end. In addition, Wildhorse prepaid $2,680 for insurance coverage that would not be used until the second year of operations. (a) Calculate the first year’s net earnings under the cash basis of accounting, and calculate the first year’s net earnings under the accrual basis of accounting.
Business
1 answer:
ale4655 [162]3 years ago
4 0

Answer:

accrued basis income: 14,300

cash basis income:        9,500

Explanation:

accrued: we reocgnize base on the time of transfer of goods and the expense are mathced when the period they occur.

revenues                   33,700

operating expense <u> (19,400) </u>

  net income             14,300

cash basis: we recognize based on the cash collection or disbursement:

collected from customer     25,900

paid expenses                     (13,600)

insurance paid                  <u>    (2,800)  </u>

           net income                 9,500

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Answer:

From the calculation below Up-Towne Movers just paid a dividend of $3.13

Explanation:

The price of share=D1/r-g

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g is the dividend growth rate of 4.3%

r is the required return of 11.1%

The share price is $46.00

$46=Do/(11.1%-4.3%)

46=Do/0.068

by cross-multiplication the equation becomes

$46*0.068 =Do

Do=$46*0.068

Do=$3.13

The dividend just paid by Up-Towne Movers is $3.13 as calculated above from the share price equation

8 0
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8 0
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A company purchased inventory for $74,000 from a vendor on account, FOB shipping point, with terms of 3/10, n/30. The company pa
marysya [2.9K]

Answer:

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Explanation:

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The cost of inventory =  the net purchase price + the freight charges

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The budget process involves doing all of the following except a. periodically comparing actual results with the goals b. establi
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Answer:

d. dismissing all managers who fail to achieve operational goals specified in the budget

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Price can change without the company being able to intervene, the same goes for consumer demand, foreign currency rates changes, and other variables in the budget.

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