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Luda [366]
3 years ago
6

Company AA and Company BB have identical Assets, Revenues and Ebit. They are in the same line of business. Company AA has a Debt

/Capital ratio of 0, while Company BB's ratio is 75%. Company BB pays a low interest rate, and both company's pay the same income tax rate. During good, profitable years, which company probably has the highest Net Income and why
Business
1 answer:
saveliy_v [14]3 years ago
7 0

Answer:  BB

Explanation:

Because the credit help the company BB to run over and to make monney.

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Pharoah Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. Du
Alinara [238K]

Answer:

Pharoah Warehouse

Journal Entries:

June 1: Debit Inventory $2,490

Credit Accounts Payable (Catlin Publishers) $2,490

To record the purchase of inventory on account, terms 2/10, n/30.

June 3: Debit Accounts Receivable (Garfunkel Bookstore) $1,300

Credit Sales Revenue $1,300

To record the sale of goods on account with usual credit terms.

Debit Cost of Goods Sold $900

Credit Inventory $900

To record the cost of goods sold.

June 6: Debit Accounts Payable (Catlin Publishers) $90

Credit Inventory $90

To record the return of inventory.

June 9: Debit Accounts Payable (Catlin Publishers) $2,400

Credit Cash $2,352

Credit Cash Discount $48

To record the payment on account.

June 15: Debit Cash $1,300

Credit Accounts Receivable (Garfunkel Bookstore) $1,300

To record the cash collection on account.

June 17: Debit Accounts Receivable (Bell Tower) $1,700

Credit Sales Revenue $1,700

To record the sale of goods on account.

Debit Cost of Goods Sold $800

Credit Inventory $800

To record the cost of goods sold.

June 20: Debit Inventory $800

Credit Accounts Payable (Priceless Book Publishers) $800

To record the purchase of goods on account, terms 2/15, n/30.

June 24: Debit Cash $1,666

Debit Cash Discounts $34

Credit Accounts Receivable (Bell Tower) $1,700

To record the collection of cash on account.

June 26: Debit Accounts Payable (Priceless Book Publishers) $800

Credit Cash $784

Credit Cash Discounts $16

To record payment on account.

June 28: Debit Accounts Receivable (General Bookstore) $2,650

Credit Sales Revenue $2,650

To record the sale of goods on account.

Debit Cost of Goods Sold $850

Credit Inventory $850

To record the cost of goods sold.

June 30: Debit Sales Returns $260

Credit Accounts Receivable (General Bookstore) $260

To record sales returns on account.

Debit Inventory $90

Credit Cost of Goods Sold $90

To record the cost of goods returned by a customer.

Explanation:

a) Data and Analysis:

Credit terms to all customers = 2/10, n/30.  This means that 2% discount is granted to customers who pay within 10 days.  Customers are expected to settle their accounts within 30 days after which, interest is charged on their accounts.

b) June 1: Inventory $2,490 Accounts Payable (Catlin Publishers) $2,490,  terms 2/10, n/30.

June 3: Accounts Receivable (Garfunkel Bookstore) $1,300 Sales Revenue $1,300

Cost of Goods Sold $900 Inventory $900

June 6: Accounts Payable (Catlin Publishers) $90 Inventory $90

June 9: Accounts Payable (Catlin Publishers) $2,400 Cash $2,352 Cash Discount $48

June 15: Cash $1,300 Accounts Receivable (Garfunkel Bookstore) $1,300

June 17: Accounts Receivable (Bell Tower) $1,700 Sales Revenue $1,700

Cost of Goods Sold $800 Inventory $800

June 20: Inventory $800 Accounts Payable (Priceless Book Publishers) $800, terms 2/15, n/30.

June 24: Cash $1,666 Cash Discounts $34 Accounts Receivable (Bell Tower) $1,700

June 26: Accounts Payable (Priceless Book Publishers) $800 Cash $784 Cash Discounts $16

June 28: Accounts Receivable (General Bookstore) $2,650 Sales Revenue $2,650

Cost of Goods Sold $850 Inventory $850

June 30: Sales Returns $260 Accounts Receivable (General Bookstore) $260

Inventory $90 Cost of Goods Sold $90

6 0
3 years ago
Accepting a good-quality lot would be a _____.
fredd [130]

Accepting a good-quality lot would be a <u><em>correct decision.</em></u>

OPTION B "correct decision" is the right answer according to Acceptance Sampling model.

Utilized in quality assurance, acceptance sampling is a statistical method for measuring the reliability of a product or service. It enables a business to ascertain a batch's quality by randomly sampling from it. The standard of quality for the whole set of products will be assumed to be equal to that of the selected sample.

It is impossible for a corporation to constantly test every single one of its goods. It's possible there are too many to inspect efficiently or cheaply. Extensive testing could also compromise the product's quality or render it unmarketable. If a representative sample were tested, the results would be accurate without jeopardizing the rest of the production run.

Acceptance sampling is a method of quality control in which a representative sample of a product batch is tested and its quality is inferred from the results. Acceptance sampling is useful for quality control when implemented properly.

To know more about Acceptance sampling refer to:

brainly.com/question/28192251

#SPJ4

5 0
1 year ago
A bond with 16 years to maturity and a semiannual coupon rate of 6.04 percent has a current yield of 5.67 percent. the bond's pa
tresset_1 [31]

The bond's price is $2,130.51, A bond with 16 years to maturity and a semiannual coupon rate of 6.04 percent has a current yield of 5.67 percent. the bond's par value is $2,000.

Current yield = annual Payment/ Market Price

Market Price = Annual Payment Current Yield

                     = (2000*6.04%)/ 0.0567

                     = 2130.511464

                     = $2,130.51

Par fee, in finance and accounting, means said fee or face cost. From this come the expressions at par, over par and under par. What does $1 par price mean?

Key Takeaways

A par price for a stock is its in-step with-share fee assigned by the organization that issues it and is frequently set at a very low amount together with one cent. A no-par inventory is issued without any unique minimal price. Neither form has any relevance to the stock's real cost in the markets.

Learn more about par value here:-brainly.com/question/20813161

#SPJ4

3 0
1 year ago
What amount is jessica allowed to deduct in year 1 and year 2? what are her stock and debt bases in the corporation at the end o
MakcuM [25]
Please attach the image 
4 0
3 years ago
You are an investment adviser representative (IAR) at a state-registered investment adviser. Under the Uniform Securities Act, y
kogti [31]

Answer:

[D] The business of an accredited investor.

Explanation:

Business entities such as investment adviser, mutual fund, and other Investment companies are generally parts of the exemptions from what is widely known as Investment Adviser. Therefore, registration is typically not needed for these types of investments. Thus, the correct option is D. An accredited investor must register.

4 0
3 years ago
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