If Gardner Home Center sold 800 power washers for $350 each, this sums up to an amount of $280,000. However, the power washers carry a 2-year warranty for repairs, estimating a repair costs averaging 2% of sales. Extracting 2% from $280,000 amount of gives us a value of $5,600. Therefore the answer is option C. $5,600 - which must be recorded because the sale took place.
Answer:
Option (d) is correct.
Explanation:
Given that,
Cash = $300,000
Short-term investments = 400,000
Accounts receivable = 900,000
Total operating expenses = 640,000
Depreciation expense = 140,000
The numerator part in the formula of days' cash on hand is cash and cash equivalents available.
Cash and cash equivalents available:
= Cash + Short term investments
= $300,000 + $400,000
= $700,000
Answer:
$25,300
Explanation:
The computation of the common shareholders received the dividend for the year 2021 is shown below:
Since in the year 2021, the dividend i.e. declared is $61,000
Now the preference shareholders dividend is
= $510,000 × 0.07
= $35,700
So for common shareholders, the dividend would be
= $61,000 - $35,700
= $25,300
