Answer: Contingency planning
Explanation: In simple words, it refers to the planning for an upcoming event that may or may not occur in the future. This planning is usually done by organisation so that they can act accordingly if any problem in business operations occurs in future.
In the given case, even after having positive forecast, Donna is planning for future uncertainty such as unexpected stoppage on sales.
Thus we can conclude that this is the type of contingency planning.
Answer:
$117,600
Explanation:
Given that the company has Cash sales that are normally 60% of total sales and Of the credit sales, 25% are collected in the same month as the sale, 60% are collected during the first month after the sale, and the remaining 15% are collected in the second month after the sale
In June, total sales $370,000
Amount that would not have been collected from this sale at the end of July
= 40% * 15% * $370,000
= $22,200
In July, total sales is $318,000,
Amount that would not have been collected from this sale at the end of July
= 40% *75% * $318,000
= $95,400
Hence the amount of accounts receivable reported on the company’s budgeted balance sheet as of July 31
= $22,200 + $95,400
= $117,600
Answer:
Deferred tax liability = $52,500
Explanation:
Difference between depreciation for financial reporting purposes and tax purposes at December 31 = 250,000
Enacted tax rate = 30%
Tax rate for future years = 40%
so Deferred tax liability = $250,000 x 40% = $100,000
For chapter 7 bankruptcy it takes 10 years for it to be removed from the credit report.
Doing simple math here-
45 + 10 = 55
Johnny will be 55 years old when the bankruptcy is removed from his credit report.
