Answer:
Return on Total asset is 16.18%.
Explanation:
Total Assets, December 31, 2019 $195,000
Total Assets, December 31, 2018 $151,000 For Year Ended December 31, 2019
Interest Expense $7,000
Net Income $28,000
Return on Total Asset = Net Income / Average total Assets
Return on Total Asset = $28,000 / $173,000
Return on Total Asset = 0.1618 = 16.18%
Average total Assets = ( Beginning Assets balance + Ending total Assets balance ) / 2
Average total Assets = ( 151,000 + 195,000 ) / 2 = $173,000
Answer:
November 17
Trade Receivable-Thomas Company $56,250 (debit)
Revenue $56,250 (credit)
November 26
Cash $55,125 (debit)
Discount Allowed $1,125 (debit)
Trade Receivable-Thomas Company $56,250 (credit)
Explanation:
November 17
Recognize Revenue and Recognize an Asset : Trade Receivable
Trade Receivable-Thomas Company $56,250 (debit)
Revenue $56,250 (credit)
Revenue Calculation = 100 units × $760 × 75% = $56,250
November 26
The payment date is within the cash discount period in terms of credit sale. Hence Thomas Company is granted cash discount of 2% (2/10, n/30).
Cash $55,125 (debit)
Discount Allowed $1,125 (debit)
Trade Receivable-Thomas Company $56,250 (credit)
Answer:
Net operating income= 341,000
Explanation:
We need to use the following structure:
Gross profit= sales - cost of goods sold
Net operating income= Gross profit - other expenses (variable and fixed)
<u>Under the absorption costing method, the cost of goods sold incorporates the fixed overhead.</u>
Sales= 980,000
COGS= (116,000 + 266,000)= (382,000)
Gross profit= 598,000
Fixed selling and administrative costs= (116,000)
Variable selling and administrative costs= (141,000)
Net operating income= 341,000
Answer:
C. Debit Service Fee Expense for $6
Explanation:
McGregor only uses the services of the Credit Card company for their own activities, therefore, aside from the income of the service provided of $200, the credit card company will charge McGregor for the use of credit card services by the customer.
As such, since it is the decision of the customer to pay with a credit card, then the customer must bear the service fee expense of 3% of the cost of the service which is $6. Hence, Option C is correct. It means aside the $200 for the service, there is a need to debit service fee expense for $6
Option D is wrong because only $200 is service revenue, it has to be clearly stated that the 3% of $6 is different from the service revenue and should be debited as service fee.
If the customer is reluctant to make the payment, then there is an allowance to pay cash instead of using the credit card service.
Answer:
d. Supply chains should consider the needs of consumers provided those needs are consistent with marketing strategies.
Explanation:
In order for supply chain customer service to be effective, it is necessary to focus on customer needs and these needs must be aligned with the company's marketing strategies.
In other words, each stage of the supply chain must operate in an integrated manner, so that each process is synergistic and so that the final consumer can receive the product at the right time, in the right quantity and in the right quality. Therefore, supply chain management will improve each step of the process, guaranteeing the quality of the processes, the reduction of time, the reduction of costs and waste and ensuring the continuous improvement of the process, which will make the product go through each channel effectively, generating value and strengthening the relationship between the company and the consumer.
