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RideAnS [48]
2 years ago
10

On December 15, 2018, Rigsby Sales Co. sold a tract of land that cost $3,700,000 for $5,000,000. Rigsby appropriately uses the i

nstallment sales method of accounting for this transaction. Terms called for a down payment of $490,000 with the balance in two equal annual installments payable on December 15, 2019, and December 15, 2020. Ignore interest charges. Rigsby has a December 31 year-end. In 2019, Rigsby would recognize realized gross profit of:
Business
1 answer:
xxTIMURxx [149]2 years ago
5 0

Answer:

$127,400

Explanation:

Gross profit ratio = [(sale - cost) ÷ sale price] × 100

                           = [($5,000,000 - $3,700,000) ÷ $5,000,000] × 100

                          = 0.26 × 100

                          = 26%.

Gross profit on down payment is recognized in 2019:

= Down payment × Gross profit ratio

= $490,000 × 26%

= $127,400

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Refused Furniture. Selina arranges to sell furniture from her furniture store to Roland for $3,000. Roland was supposed to give
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Answer:B. She is entitled to recover the damages if she can show that Roland agreed to pay such damages in his contract with her.

Explanation:

The non payment of the N500 installment by Roland constitute a breach of the sales contract, However an evidence of a commitment to be liable for additional cost that will be incurred will make it possible for Selina to recover the damages.

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3 years ago
Indicate whether the following events might cause stocks in general to change price, and whether they might cause Big Widget Cor
-BARSIC- [3]

Answer:

Check the explanation below

Explanation:

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Results of company is unsystematic (Specific) risk, as they are as expected stock price wont have much impact

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8 0
3 years ago
Using a steel framework with masonry sheathing, the _____________, designed by louis sullivan, is thought by many to be the firs
xxTIMURxx [149]

wainwright building

7 0
3 years ago
Lloyd Inc. had sales of $200,000, a net income of //415,000, and the following balance sheet: Cash $10,000 Accounts Payable $30,
Anastasy [175]

Answer:

The firm's new quick ratio is  2.9

Explanation:

The current ratio is calculated as  

Current ratio = Current assets / Current liabilities

2.5 times = (Cash + receivables + Inventories ) / (Accounts payable + Other current liabilities)

2.5 = ($10,000 + $50,000 + Inventories) / $50,000

$60,000 + inventories = $125,000

Inventories = $65,000

Therefore, $85,000 worth of inventories were sold off.

If the funds generated are used to reduce the common equity that is by repurchasing the equity at book value.

Hence, the common equity amounts to $115,000

Calculating the ROE before the inventory is sold off:

ROE = Net income / Stockholder's equity

= $15,000 / $200,000

= 0.075 or 7.5%

Calculating the ROE after selling off the inventory

ROE = $15,000 / $115,000

= 0.13 or 13%

The firm's new quick ratio is

Quick ratio = (Current assets - Inventories) / Current liabilities

= ($210,000 - $65,000) / $50,000

= 2.9

3 0
3 years ago
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