The ratio could increase with the purchase of $170,000 of inventory on account.
The CPA or Certified Public Accountant's report should <u>state that the CPA performed procedures to evaluate management assumptions</u> when they examine a client's projected financial statements.
CPAs are public accountants who are licensed to practice their profession publicly and must always comply with the government's taxation practices and provisions of Statements on Standards for Accounting and Review Services.
Take note, CPA report doesn't refer to the their auditor's report on the historical financial statements. The report cannot also explain the principal differences between the historical statements and the projected financial statements.
Additionally, a CPA's report must not include the their opinion on the client's ability to continue as a going concern.
Curious about Code of Ethics for CPAs? Read here: brainly.com/question/28198157
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Answer:
Option A $25000
Explanation:
The breakeven point in sales dollars can be calculated by using the following formula:
Breakeven Sales In Dollars = Fixed Cost / Contribution Margin ratio
The fixed cost here is $14000 and the contribution margin ratio is 0.56.
So by putting the values, we have:
Breakeven Sales In Dollars = $14000 / 0.56 = $25000
So the sales required to breakeven at a contribution margin of 0.56 is $25000. Remember that Fixed cost though remains the same but contribution margin ratio changes when the variable cost or selling price changes. So if the changes in variable cost or selling prices are witnessed to achieve the maximum profit possible, then the managers must recalculate the breakeven point because it has been altered due to these changes.
Answer:
137.89 days
Explanation:
Days' sales receivables = (Accounts Receivables / Net Credit Sales) *365
Accounts Receivables = $ 680,000
Net Credit Sales = $ 1,800,000
Days' sales receivables = $680,000 / $ 1,800,000 * 360 days
=137.88888
= 137.89 days
The days' sales in receivables is 137.89 days
