Answer:
Amount of cash paid on Aug 16 = <u>$8,167.50</u>
Explanation:
As for the information provided the terms of purchase are,
1% discount if payment made within 10 days,
and a total credit period of 30 days without any discount beyond 10 days.
Here, inventory purchased on August 7 = $9,750
Less; Return on 11 August = $1,500
Net Purchases = $8,250
Since payment is made on 16 August that is within 10 days from purchase discount will be received
= $8,250 
1% = $82.50
Amount of cash paid on Aug 16 = $8,250 - $82.50 = $8,167.50
Answer:
The correct answer is letter "C": Confirmation of cash should only be performed as of the balance statement date because the auditor expresses an opinion as of that date.
Explanation:
Confirmation of cash is an audit procedure in which specialists request the company to get in touch with its banker to verify the organization's balance. The procedure is not based only on the balance statement but according to the transactions the company has carried out regardless of the date.
Answer:
3.88%
Explanation:
ROA = Net income/Total assets
ROA = $972/$16,127
ROA = 0.0602716
ROA = 6.03%
Retention ratio = 1 - Payout ratio
Retention ratio = 1 - 0.38
Retention ratio = 0.62
Internal growth rate = (ROA*Retention ratio) / [1 - (ROA*Retention ratio)]
Internal growth rate = 0.0602716*0.62 / 1 - (0.0602716*0.62)
Internal growth rate = 0.037368392 / 1-0.037368392
Internal growth rate = 0.037368392/0.962631608
Internal growth rate = 0.038818995
Internal growth rate = 3.88%
