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Serhud [2]
3 years ago
10

The operating cycle of a merchandising company isA)always one year in length.B)ordinarily longer than that of a service company.

C)about the same as that of a service company.D)ordinarily shorter than that of a service company.
Business
1 answer:
nevsk [136]3 years ago
5 0

Answer: Option B

Explanation:  Operating cycle refers to the time period taken by the firm to produce the commodity , then sell it and receive the cash.

In case of physical commodities, it takes time for a firm to procure raw materials and produce the goods also the payments from the debtors take time as the amount involved is high.

On the other hand the service company do not need to procure any raw material and services are provided not produced. Therefore, the operating cycle of service company is smaller than the manufacturing company.

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Global Corporation had 58,000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors
wolverine [178]

Answer:

Jul-01

Dr Retained Earnings $324,800

Cr Common stock dividend distributable $232,000

Cr Paid-in capital in excess of par value - Common stock 92,800

Explanation:

Preparation of the journal entry to record the dividend declaration is:

Jul-01

Dr Retained Earnings $324,800

(58,000 shares x 20% x $28)

Cr Common stock dividend distributable $232,000

(58,000 shares x 20% x $20)

Cr Paid-in capital in excess of par value - Common stock 92,800

(58,000 shares x 20% x $8)

8 0
3 years ago
Vaughn Manufacturing can sell all the units it can produce of either Plain or Fancy but not both. Plain has a unit contribution
Annette [7]

Answer:

Vaughn should produce Plain as it makes greater profit.

Explanation:

Vaughn Manufacturing can sell all the units it can produce of either Plain or Fancy but not both.

Plain has a unit contribution margin of $86 and takes two machine hours to make and Fancy has a unit contribution margin of $111 and takes three machine hours to make.

There are 2400 machine hours available to manufacture a product.

Profit per machine hour for Plain

= \frac{86}{2}

= $43

Profit per machine hour for Fancy

= \frac{111}{3}

= $37

The difference in profit

= $43 - $37

= $6

Plain makes $6 more profit per machine hour than Fancy.

7 0
3 years ago
Fern invested $6400 into a continuously compounded account with an interest rate of 1.5%. After 10 years, how much is the accoun
777dan777 [17]

Answer:

FV= $7,435.74

Explanation:

Giving the following information:

Initial investment= $6,400

Interest rate= 1.5%

Number of periods= 10 years

<u>To calculate the value of the account in ten years, we need to use the following formula:</u>

FV= PV*e^(i*n)

FV= 6,400*e^(0.015*10)

FV= $7,435.74

6 0
3 years ago
Compared with a career , a job ?
Margaret [11]
A job is just a short term thing to get cash and build up experience . a career is a long term pursuit of lifelong ambition . a career you enjoy the rest of your life
5 0
3 years ago
Read 2 more answers
You need $20,000 to purchase a used car. Your wealthy uncle is willing to lend you the money as an amortized loan. He would like
Serga [27]

Answer:

The annualy payment for theamortized loan is $6,802.44

Explanation:

First we will find the total loan payment TP for the $20,000 borrowed over the next four years with a annual return of 8%:

TP = $20,000 *(1+8%)^4

TP = $20,000 *(1.08)^4

TP = $20,000 *1.3605 = $27,209.7

The annual payments AN is obtained by dividing the TP into the 4 years:

AN  = $27,209.7 / 4 = $6,802.44

4 0
3 years ago
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