Answer:
The answer is General Forge and Foundry Company selling and replacing its inventory 2.55 times per year on average.
Explanation:
We have:
The company cost of good sold = Sales x 65% = 100,000 x 65% = $65,000
The company inventory = Total current asset - Cash - Account Receivable = 85,000 - 38,250 - 21,250 = $25,500
=> Inventory turn over ratio = Cost of good sold / Inventory = 65,000/25,500 = 2.55 times or the company is selling and replacing its inventory 2.55 times per year.
So, the answer is 2.55 times.
Answer: Balance Sheet
Profit and Loss Statement
Cash Flow Statement
Explanation:
Balance Sheet or the statement of Financial Position is a report that shows the assets that your business owns against your equity and liabilities. This report can help you make asset purchasing decisions or decisions about how to fund the acquisition of new assets.
Profit and Loss Statement: shows a detail of the income your business has earned, the expenses you incurred to earn this income and your profit/loss. This report can help you figure out if your expenses are too high or the prices you charge for your goods/services are too low.
Cash Flow Statement: shows your liquidity position at different points during a financial period. This report is important as it allows you to see periods when you may need an extra inflow of funds to keep your business operational and can help you decide when to apply for bank loans or whether to delay the purchase of some assets.
Answer:
Loss of $1,080
Explanation:
The correct journal entries would be:
Dr Accumulated Depreciation 9,010
Dr Cash 2,010
Dr Loss on sale 1,080
Cr Truck (Asset) 12,100
Thus, the correct answer is a loss of $1,080
If Baldwin currently pays his employees with $50/hour and he promised to give an additional performance bonus of 0.25% if the productivity goals are reached. Assuming that he has 500 employees, he needs to pay his employees:
$50 * (1+0.0025) = $50.125/hour will be the new rate of each employee,
if he has 500 employees:
500 * $50.125 = $25,062.50
He has to pay a total of $25,062.50 per hour in total.
