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Nuetrik [128]
3 years ago
8

Consider the following financial statement information for the Sourstone Corporation: Item Beginning Ending Inventory $11,482 $1

2,280 Accounts receivable 6,751 7,281 Accounts payable 7,052 7,393 Net sales $140,403 Cost of goods sold 88,213 Assume all sales are on credit. Calculate the operating and cash cycles.
Business
1 answer:
Nadusha1986 [10]3 years ago
4 0

Answer:

The operating and cash cycles is 134.80 days and 75.04 days respectively.

Explanation:

The computation of the operating and the cash cycle is shown below:

The operating cycle = Days inventory outstanding + days sale outstanding

where,

Day inventory outstanding = (Beginning inventory + ending inventory) ÷ cost of goods sold × number of days in a year

= ($11,482 + $12,280) ÷ $88,213 × 365 days

= ($23,762 ÷ $88,213) × 365 days

= 98.32 days

Day sale outstanding = (Beginning  Accounts receivable + ending Accounts receivable) ÷  Net sales × number of days in a year

= ($6,751 + $7,281) ÷ $140,403 × 365 days

= ($14,032 ÷ $140,403) × 365 days

= 36.48 days

Now put these days to the above formula  

So, the days would equal to

= 98.32 days + 36.48 days

= 134.80 days

Now The cash cycle = Days inventory outstanding + days sale outstanding - days payable outstanding

where,

Day payable outstanding = (Beginning Accounts payable + ending Accounts payable) ÷  cost of goods sold  × number of days in a year

= ($7,052 + $7,393) ÷ $88,213 × 365 days

= ($14,445 ÷ $88,213) × 365 days

= 59.76 days

Now put these days to the above formula  

So, the days would equal to

= 98.32 days + 36.48 days - 59.76 days

= 75.04 days

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A company received a bank statement showing a balance of $78,000. Reconciling items included outstanding checks of $2,400 and a
Kisachek [45]

Answer:

Adjusted Bank Balance = $85,000

Explanation:

Adjustment of bank balance is a bank reconciliation procedure, that is used to match the amount in the bank statement with the amount in the company's balance sheet.

To adjust the bank balance, particulars that need to be subtracted or added to the bank statement balance has to be identified and treated accordingly.

For this example, the adjusted balance is calculated thus:

Adjusted bank balance = (Bank statement balance) - (outstanding checks) +(deposit in transit)

Adjusted Bank Balance = 78,000 - 2,400 + 9,400 = $85,000

Note:

outstanding checks are subtracted because they are payments to be made made by the company, representing a liability to the company (payer)

deposit in transit is an income to the company that has not been credited yet, but that will be credited.

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3 years ago
2. Sorry, you didn't win the lottery, but here's a way you can still be a millionaire! Starting at age 22, every night you take
Colt1911 [192]

Answer: At the age of 65 the money will be $90337.5

Explanation: There are 365 days in a year take $5 multiply it by 365 to get the money after one year then multiply it by 10 % to get an interest per year. Add the interest to the amount then multiply by 43 years.

Note 65years-22 years = 43 years

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3 years ago
Marginal cost is calculated for a particular increase in output by A. multiplying the total cost by the change in output. B. div
Alina [70]

Answer:

B) dividing the change in total cost by the change in output

Explanation:

Marginal cost(MC) is the cost incurred as a result of producing additional units of goods and services. It is calculated by dividing a change in total cost by a change in output.

That is,

Marginal cost(MC)= change in total cost(TC)/ change in output

Total cost(TC): This is the addition of fixed and variable cost in production.

Total cost(TC)= fixed cost (FC)+variable cost (VC)

Fixed cost (FC) are cost that doesn't change during the production process such as buildings, machineries and furniture.

Variable cost (VC) are cost that changes or are used up during production process such as raw materials.

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3 years ago
Read 2 more answers
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Answer:

True

Explanation:

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FromTheMoon [43]

Answer:

Explain how quickly a new product will be adopted, given the values and regular experiences of potential customers?

B. Compatibility.

Explanation:

Marketing can be defined as all the activities aimed at improving a business product to potential customers with the aim of improving the company's market share. Most companies use marketing as a tool to improve their sales. It is mostly crucial in companies that want their new product to be adopted by their potential customers. For this to happen, the following factors have to be considered;

1. Complexity

Complexity can be defined as the ability of the potential customers to understand your product. The marketing of the product should be in simple and clear language that will easily be understood by most customers. The product should also be easy to use in the customer's daily life. It has been know that the more complex a product is, the harder it will be for the customers to adopt it.

2. Compatibility

Compatibility can be defined as the rate at which the product being offered aligns well with market values and expectations. The more compatible the product is to the market the faster the product will be adopted.

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