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Helen [10]
3 years ago
15

Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February

2, 2012, for $30,000, with terms 2/10, n/30. On February 10, the company pays on account for the inventory. Record the inventory purchase on February 2 and the payment on February 10.
Business
1 answer:
Ksenya-84 [330]3 years ago
6 0

Answer:

                                      Dr.             Cr.

February 2, 2012

Inventory                    $30,000

Account Payable                          $30,000

February 10, 2012

Account Payable       $30,000

Discount received                        $600

Cash                                              $29,400

Explanation:

Term 2/10, n/30 means there is a cash settlement discount of 2% is available if the payment is made within 10 days after the purchase of goods. Net credit period is 30 days. Purchases were made on February 2 and Payment was made on February 10 within the discount period, so Shankar Company is entitled to claim the discount of 2%. Cash will be paid net of discount.

Discount = $30,000 x 2% = $600

Cash Payment = $30,000 - $600 = $29,400

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J & B Corp. is investing in a major capital budgeting project that will require the expenditure of $20 million. The money wi
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Answer:

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With weights cost will be as follows

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4 years ago
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The Dog House has net income of $3,450 and total equity of $8,600. The debt-equity ratio is .60 and the payout ratio is 30 perce
Snezhnost [94]

Answer:

21.29%

Explanation:

The computation of the internal growth rate is shown below:

But before that we need to determine the following calculations

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= debt ÷ equity

The  debt is 0.6 of equity

So,

= 0.6 × $8,600

= $5,160

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Total assets = Total liabilities + Total equity

= $8,600 + $5,160

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Now  as we know that

Retention ratio = 1 - payout ratio

= 1 - 0.3

= 0.7

And, finally

The Internal growth rate is

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6 0
3 years ago
Chapman Machine Shop is considering a 4-year project to improve its production efficiency. Buying a new machine press for $576,0
DIA [1.3K]

Answer:

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The General rule is to appraise the investment based on various appraisal techniques.

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The Net Present Value (NPV) approach will be the best method to proceed with.

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b. If NPV is positive (Accept if it's a singular project, Accept the highest positive NPV if it's for mutually exclusive Projects)

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Kindly refer to the attached for detailed workings

6 0
3 years ago
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