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DIA [1.3K]
3 years ago
6

On May 18, Rodriguez Co. issued an $84,000, 6%, 120-day note payable on an overdue account payable to Wilson Company. Assume tha

t the fiscal year of Rodriguez ends on June 30. Which of the following relationships is true?a. Rodriguez is the creditor and credits Accounts Receivable
b. Wilson is the creditor and debits Accounts Receivable
c. Rodriguez is the borrower and debits Accounts Payable
d. Wilson is the borrower and credits Accounts Payable
Business
1 answer:
ankoles [38]3 years ago
7 0

Answer:

c. Rodriguez is the borrower and debits Accounts Payable

Explanation:

Rodriguez Co will :

  1. De-recognise the Trade Payable - Wilson Company
  2. Recognise a Financial Liability to Wilson Company

Wilson Company will :

  1. Recognise an Investment or FA in Rodriguez Co
  2. De-recognise the Trade Receivable - Wilson Company
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The school need to increase its tuition fee in order to increase its profitability despite having a full class already.

<h3>What is a profitability?</h3>

This refers to the measurement of an organization's profit in relation to its expenses.

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Your company has sales of this year and cost of goods sold of . You forecast sales to increase to next year. Using the percent o
Katyanochek1 [597]

Complete question :

Your company has sales of $101,500 this year and cost of goods sold of $66,300. You forecast sales to increase to $118,900 next year. Using the percent of sales method, forecast next year's cost of goods sold. The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career The forecasted cost of goods sold (COGS) is $ ___________ (Round to the nearest dollar.)

Answer:

$77,666

Explanation:

Given the following :

Sales for the year = $101,500

Cost of goods sold =$66,300

Forecasted increase in sales for next year = $118,900

Forecasted cost of goods sold for next year =?

Percentage cost of goods sold for this year:

Cost of goods sold / sales for this year

$66300/$101500

= 0.6532019

Forecasted cost of goods sold for next year:

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Answer:

C) negative at a discount rate of 20%.

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20% is higher than the IRR of 15%, so the NPV should be negative.

15% is equal to the IRR of 15%, so the NPV should be zero.

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3 years ago
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