Answer:
Journal entries are given below
Explanation:
February 1
(Issues 5,000 shares of no-par common stock for $15 per share)
DEBIT CREDIT
Cash(5000 x $15) $75,000
Common stock $75,000
May 15
(Issues 500 shares of $10 par value, 7.5% preferred stock for $12 per share)
DEBIT CREDIT
Cash (500x$12) $6,000
Preferred stock (500x$10) $5,000
Additional paid in capital $1,000
October 1
Declares a cash dividend of $0.75 per share
DEBIT CREDIT
Retained Earnings (5500x$0.75) $4,125
Dividend Payable $4,125
October 15 Date of Record
No Entry Required
October 31 Pays the cash dividend
DEBIT CREDIT
Dividend Payable $4,125
Cash $4,125
Answer: True
Explanation:
Decision regarding an asset replacement is usually based on both the internal rate of return and the net present value of the incremental cash flows.
Therefore, it should be noted that this brings about the complications when comparing the development of relevant cash flows to the expansion decisions.
Answer:
$28,700
Explanation:
We know that
Ending work in process inventory = Opening work in process inventory + total manufacturing cost - cost of finished goods manufactured
where,
Total manufacturing cost = cost of direct materials used + direct labor cost + overhead cost
= $408,000 + $56,000 + $72,000
= $536,000
So, the ending work in process inventory would be
= $16,200 + $536,000 - $523,500
= $28,700
13-10 = 3, and it takes 10 30 cent "parts" to make 3 dollars, so it would be 260 texts.
Answer:
a.Operating Cycle = Inventory Conversion period + Days Sales Outstanding = 100 + 35 = 135 Days
Cash Conversion Cycle = Inventory Conversion period + Days Sales Outstanding - Days Payables Outstanding
= 100 + 35 - 11 = 124 Days
b.If Carraway were to decide to take full advantage of its credit terms and delay payment until the last possible date , their cash conversion cycle is 100 + 35 - 51 = 84 Days
c.Carraway should take its suppliers offer to finance its inventory with the interest free 35 Day loan