Answer:
The journal entry to record the purchase on August 7 is:
Debit Merchandise $9,750
Credit Accounts Payable $9,750
Explanation:
The terms of 1/10, n/30 means 1% discount for the payment within 10 days and the full amount to be paid within 30 days.
The company purchased $9,750 of merchandise on August 7, returned $1,500 worth of merchandise on August 11, paid the full amount due on August 16 and received the discount. Juniper Company uses the gross method of accounting for purchases. Following accrual accounting method, the journal entry to record the purchase on August 7 is:
Debit Merchandise $9,750
Credit Accounts Payable $9,750
Answer:
7.514%
Explanation:
Given that,
Internal growth rate = 7.1%
Dividend payout ratio = 25% per year
Total assets to sales ratio = 0.85
ROA:
= Internal growth rate ÷ [(1 - payout ratio)(1 + internal growth rate)]
= 7.1% ÷ [(1 - 25%)(1 + 7.1%)]
= 0.071 ÷ (0.75 × 1.071)
= 0.071 ÷ 0.80325
= 8.84%
ROA = Net income ÷ Total assets
Now, we multiply and divide right hand side by sales
ROA = (Net income ÷ sales) ÷ (Total assets ÷ sales)
= (Net income ÷ sales) × (sales ÷ total assets)
8.84% = Profit margin × (1 ÷ 0.85)
Profit margin = 8.84% × 0.85
= 7.514%
Answer:
1. Rule out other explanations such as an error by the computer distributor.
Explanation:
The best and most appropriate action is to rule out explanation. There can be an error with the shipment or by computer distributor. Before suspecting Bill for the missing computer we need to seek explanation from him. The computer can either be loss or missed out when shipped. Bill should be asked to explain the missing inventory. The explanation from Bill can be a point for further investigation.
