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3 years ago

What is the normal balance for the Accounts in questions 4-6?

Business

1 answer:

andre [41]3 years ago

7 0

Answer:

4. Debit

5.Credit

6.Credit

Explanation:

The rule is simple. If the account is Asset, its normal balance is Debit. If the account is Liability or Owner Equity, their normal balance are Credit.

The things are you have to recognize which of them are Asset, Liability or Owner Equity.

The only way is to practice, to get yourself as much exposure to financial accounting ( e.g: their are plenty of Financial Reports of Big Firms available online for you to read) as possible so you may recognize what side of the Balance Sheet these items would be categorized into as soon as you heard its name.

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AutoZone and O'Reilly are two competitors in the retail automotive parts industry.

sineoko [7]

Answer:

Gross Profit Margin: 53 % and 54%

Inventory days outstanding: 249 days and 252 days.

Explanation:

Gross Profit Margin = Gross Profit / Sales * 100

Gross profit = Sales - Cost of Goods Sold

Gross Profit :

Year 1 : 10,498,448 - 4,860,309 = 5,638,139

Year 2 : 8,277,782 - 3,804,031 = 4,473,751

GP margin :

Year 1 = 53%

Year 2 = 54%

Days of inventory : Average inventory / Cost of Sales * 365 days

Year 1 : 3,320,864 / 4,860,309 * 365 = 249 days

Year 2 : 2,632,898 / 3,804,031 *365 = 252 days

7 0

3 years ago

Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm’s t

posledela

Answer:

Based on the DuPont equation and given information, ROE of Harrington Inc is 13.818%.

Explanation:

We have to find the total equity and total debt of Harrington Inc in order to apply the DuPont equation for finding ROE because net income, sales of Harrington Inc. are already given.

- To find Harrington Inc's total debt, apply the Debt-to-capital formula: The Harrington Inc's total debt/The Harrington Inc's total capital = 45% => Harrington Inc's total debt = The Harrington Inc's total capital * 45% = $250,000 x 45% = $112,500;

- To find Harrington Inc's total equity, apply the accounting equation Asset = Liabilities + Owner's Equity: The Harrington Inc's total equity = The Harrington Inc's total asset - The Harrington Inc's total debt = $250,000 - $112,500 = $137,500;

- Using the Dupont equation, calculate the ROE as followed:

(NI/Sales)* (Sales/ Total assets) * (Total assets/ Total common equity) = (19,000/325,000) * ( 325,000/ 250,000) * (250,000/137,500) = 13.818%.

- Thus, the ROE = 13.818%.

5 0

4 years ago

A point outside the production possibilities curve represents a combination of goods that is

pochemuha

Answer:

A production combination outside of the PPF is unattainable by the economy with the given resources and technology.

This represents the Concept of scarcity in economics.

If the economy wishes to achieve the production point outside the frontier, they will have to enhance the production possibility capacity by introducing new technology or finding new resources.

Explanation:

4 0

3 years ago

Firms face competing pressures in the marketplace–how to achieve lower costs through proven approaches to production, while look

Solnce55 [7]

Answer:

1. Pressures for local responsiveness may make it difficult to ______________________________.

monitor and adapt to changing customer tastes in a large number of foreign markets

2. __________________________is the most appropriate strategy when there are substantial differences across nations with regard to consumer tastes and preferences, and where cost pressures are not too intense.

Localization strategy

3. ___________________________ is the most appropriate strategy when the firm simultaneously faces strong pressures for both cost reductions and local responsiveness.

Transnational strategy

4. A firm facing low pressures for local responsiveness and few pressures to contain costs might best pursue a(n) _______________________.

international strategy

5. Markets are dynamic, and any firm will face competition. In time, international and localization strategies tend to become less viable, and managers need to ________________________________.

orient their companies toward either a global standardization or transnational strategy

Explanation:

When a company's global business activities are coordinated via cooperation and interdependence between its head office, operational divisions, and internationally located subsidiaries or retail outlets, the entity tends to realize more competitive advantages than when it uses a single strategy. This is why the transnational strategy is offering the best alternative for international businesses in the globalized economy.

7 0

3 years ago

Read 2 more answers

sale of merchandise on account for $36,000 is subject to an 8% sales tax. a. Should the sales tax be recorded at the time of sal

aleksandr82 [10.1K]

Answer:

a.Sales tax to be recorded at the time of sales.

b.36000

c.38880

d.Sales tax payable

Explanation:

a.Because sales tax is subjected to sales so it is liability of seller to charge sales tax to customer.

b. Sales = $36000

c.Account receivable = [36000+(36000*8%)]=36000+2880=38880

Entry: Dr Account receivable 38880

Sales 36000

Sales tax payable 2880

d. Sales tax payable, it is liability for a seller to refund to government treasury.

6 0

4 years ago