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3 years ago

Selected information from the accounting records of Ellison Manufacturing Company follows:

Business

1 answer:

Amanda [17]3 years ago

7 0

Answer:

b. 94.9

Explanation:

The computation of the number of days' sales in average inventories is shown below:

Day inventory outstanding = (Beginning inventory + ending inventory) ÷ 2 ÷ cost of goods sold × total number of days in a year

= ($672,000 + $576,000) ÷ 2 ÷ $2,400,000 × 365 days

= ($624,000 ÷ $2,400,000 ) × 365 days

= 94.90 days

Simply we take the average of inventory and divide from the costs of goods sold

All other information which is given is not relevant. Hence, ignored it

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Prepare a multiple-step income statement for Armstrong Co. from the following data for the year ended December 31. Sales, $755,0

Tatiana [17]

Answer:

See explanation

Explanation:

Armstrong Co.

Multi-step Income Statement

For the year ended, December 31, 20YY

Sales $755,000

Less: Cost of merchandise sold (330,000)

Gross Profit $425,000

Less: Operating expenses

Administrative expenses $35,000

Selling expenses $50,000

Total operating expenses $85,000

Income from operation $340,000

Other revenue and expenses:

Rent Revenue $25,000

interest expense ($30,000)

Total other revenues (expenses) $(5,000)

Income before taxes $335,000

Less: Income Tax 0

Net Income (loss) $335,000

That is the appropriate way to prepare a multi-step income statement

3 0

3 years ago

A property is listed for sale at $235,000. A buyer's offer of $220,000 is rejected by the seller. Six months later, the seller r

AveGali [126]

Ok, so not too sure if this will answer you’re question, but let’s give it a go anyway. Approach this question with logic, though the original asking price was 235k it sold for 210k. Subsequently this would make the market value of the property 210k.

I believe the answer is A or $210,000

7 0

3 years ago

The following information relates to Jay Co.’s accounts receivable for the year just ended: Accounts receivable, 1/1 $ 650,000 C

ziro4ka [17]

Answer:

Gross A/R 1,085,000

Allowance (110,000)

Net A/R 975,000

Explanation:

Before allowance for uncollectible accounts:

This means we are asked for the gross accounts receivable:

beginning A/R + net credit sales - collection - write-off accounts:

650,000 + (2,700,000 - 75,000) - 2,150,000 - 40,000 = 1,085,000

Gross A/R 1,085,000

Allowance (110,000)

Net A/R 975,000

8 0

3 years ago

John occasionally borrows the car of his friend, sophie. sophie has a pap with liability limits of 100/300/50. john also has a p

Vaselesa [24]

Answer:

Sophie's policy will pay $100000, John's policy will pay $200000 ( A )

Explanation:

John having a pa with liability limits 250/500/50 means that John has a liability limit of $200000 and since John was the driver of the Sophie's vehicle he will pay $200000 due to the driver policy

and Sophie's policy will pay the remaining $100000 as a secondary payment since she was not the driver when the accident happened .

total liability in Bodily injury suffered by one person during the cause of the accident = $300000

3 0

3 years ago

Read 2 more answers

The company received an order on December 29 that was boxed and was sitting on the loading dock awaiting pick-up on December 31.

Natasha_Volkova [10]

Answer:

That was a mistake since those gods were part of the company's inventory. FOB shipping point refers to sales transactions where the title of the good is transferred once the goods leave the company's warehouse or shipping dock. In this case, the goods left the company on January 1, so they should have been included in the company's inventory of December 31, and the sales should be recognized during January, not December.

Explanation:

5 0

3 years ago