Answer:
b. the average number of days to collect receivables is 64.
Explanation:
Average number of days to collect receivables = Accounts Receivable ÷ ( Sales / 365)
= $46,000 ÷ ($266,000 / 365)
= 63.10 or 64
Conclusion
The average number of days to collect receivables is 64
Answer:
$667,000
Explanation:
stockholders' equity December 31, 2016 = $540,000
plus net income = $60,000
minus cash dividends = ($18,000)
plus issuance of common stock = $70,000
plus sale of treasury stock = $15,000
stockholders' equity = $667,000
Stock dividends do not affect the value of stockholders' equity, that is why they are not included in this calculation.
Answer:
C. increased diversification of Sierra Infusion.
Explanation:
The top management team at Sierra Infusion is concerned about the declining performance of firms in their industry. The team members are becoming concerned about the security of their jobs at Sierra Infusion. At a meeting over dinner, the top management team agrees to go to the Board of Directors with a proposal for increased diversification of Sierra Infusion.
Answer:
$570,000
Explanation:
At the time of recording of the fixed assets, the fixed assets should be reported at purchase cost or historical price or originally cost or acquiring cost, whether all other values are given i.e appraisal value, the seller purchased value, similar warehouse book value, etc
So, in the given case, it would be recorded at $570,000 as the buyer purchase the building at this cost only.
