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3 years ago

Financial information is presented below:

Business

1 answer:

VARVARA [1.3K]3 years ago

8 0

Answer:

Net Income $21,000

Net Sales $140,000

Operating Margin ratio = 14%

Explanation:

Net Income is calculated by subtracting operating expenses from gross income.

Net is is calculated by adjusting contra sales account balance is sales value+

Profit Margin ratio is the ratio of net profit to sales value.

Sales Revenue 150,000

Sales Discount (3,000)

Sales returns and allowances (7,000)

Net Sales 140,000

Cost of Goods sold (91,000)

Gross Income 49,000

Operating Expenses (28,000)

Operating / Net Income 21,000

In the absence of interest expenses and tax rate operating income is considered as net income.

Operating Margin = ( $21,000 / $150,000 ) x 100 = 14%

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Here, in the given case, Mort was offered a line of credit financial facility. Therefore, Option D is the correct choice.

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A line of credit is a versatile mortgage from a monetary group that includes a described amount of cash that you could access as needed and pay off both right now or over time. Interest is charged on a line of credit as quickly as money is borrowed.

The missing information in the question is given below:

A. revolving credit agreement.

B. asset guarantee pledge.

C. pledging agreement.

D. line of credit.

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2 years ago

When potential real GDP is equal to 70, this economy is in recession . The amount of the shortfall in planned aggregate expendi

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Answer: Option (D) is correct.

Explanation:

If the potential GDP is 70 and economy is in recession. Potential GDP is the GDP of an economy which can be achieved with the best utilization of economy's resources.

The amount of the shortfall in planned aggregate expenditure is equal to the vertical distance between the 45 degree line and the AE = Y, at a level of potential real GDP.

This is also shown by an arrow in the diagram.

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3 years ago

During 2021, Blossom Company purchased the net assets of Ayayai Corporation for $2178000. On the date of the transaction, Ayayai

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Answer:

When the purchase price is lower than the fair market value, accountants generally refer to this as negative goodwill. All negative goodwill must be reported as a gain.

the net fair market value of assets = $1,069,200 + $2,494,800 - $594,000 = $2,970,000

gain = fair market value - purchase price = $2,970,000 - $2,178,000 = $792,000

Another way to refer to this type of situation is a bargain purchase.

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3 years ago

Laws and agencies do not impact our lives on a daily basis. True or False

pickupchik [31]

Hello,

Here is your answer:

The proper answer to this question is option B "false".

Here is how:

It is regular for a person to get a speeding ticket or break the law somehow on a daily basis.

Your answer is B.

If you need anymore help feel free to ask me!

Hope this helps!

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4 years ago

Crimson Inc. recorded credit sales of $779,000, of which $590,000 is not yet due, $110,000 is past due for up to 180 days, and $

kvasek [131]

Answer:

$49,690 credit balance

Explanation:

total credit sales = $590,000

past due up to 180 days = $110,000

past due for more than 180 days = $79,000

Crimson expects to not collect:

3% of credit sales not due yet = $590,000 x 3% = $17,700
14% of credit sales past due up to 180 days = $110,000 x 14% = $15,400
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total = $49,690

Allowance for uncollectible amounts has $3,500 debit balance

the adjusting entry should be:

Dr Bad debt expense 53,190

Cr Allowance for uncollectible accounts 53,190

The ending balance = $53,190 - $3,500 = $49,690

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3 years ago