Answer:
d.
Explanation:
Financial Statements depicts the financial position of a firm at a particular point of time or specified date. The users of financial statements use various types of analysis to understand or compare the current financial statements of the company to prior years or with those of the competitors.
‘Ratio Analysis’ is used to analyze the performance of a company. It is used to analyze the liquidity, profitability, solvency and operational efficiency of the company.
Accounts receivable turnover is the ratio of net credit sales to average accounts receivable. It can be calculated as:
Average accounts receivable = 
Accounts turnover ratio = 
No. of days of sales in receivables can be derived using the below mentioned formula:
No. of days of sales in receivables = 
The direct method only takes the cash transactions into account and produces the cash flow from operations. The cash flow indirect method makes sure to automatically convert the net income in terms of cash flow.
A major advantage of the indirect method of cash flows is that the method provides a reconciliation between net income and cash flows. The indirect method also helps financial-statement users better understand different linkages among financial statements and is a simple way of preparing the statement of cash flows.
Which is better the direct or indirect method of cash flows statement?
Direct cash flow statement is broadly accurate as it does not rely on adjustments and hence it takes less to time prepare cash flows statements. The indirect cash flow method cannot be regarded as accurate as it accounts for adjustments and it generally requires more time in preparation.
How do you tell if a company uses direct or indirect method?
While both are ways of calculating your net cash flow from operating activities, the main distinction is the starting point and types of calculations each uses. The indirect method begins with your net income. Alternatively, the direct method begins with the cash amounts received and paid out by your business.
Learn more about cash flow statement:
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Answer:
As a result of this stock dividend, Sheldon's common stock will increase by $900,000, the additional paid in capital will not change, and the retained earnings will decrease by $900,000
Explanation:
Stock dividend is paying dividends by issuing additional stocks to shareholders.
In this case,50,000 shares were issued instead of paying cash dividends.
The stock dividend is financed from retained earnings and the amount involved is $900,000(50000*$18).
However,common stock would witness an increase of $900,000 by a way of credit and retained earnings would reduce by the same amount with no impact in the paid in capital in excess of par since the par value of the stock was not provided,hence it is no par value stock.
Answer:
a. $225, 000
b. $900, 000
c. $140, 000
Explanation:
Ralph Mini-Mart Store in Alpine:
(a) Beginning inventory: this is the value of inventory on hand at the beginning of the financial year. This is the value is the same as the value of ending inventory at the end of the previous financial year. This value includes the value of the inventory and any costs that were incurred to bring the inventory to the organization’s store house.
For Ralph Mini- Mart, beginning inventory = $225, 000 (refer to item 5)
(b) Transfers- In: this is the inventory that was purchased during the financial year. This value will include the cost of the inventory and any other costs that were incurred to bring the inventory to the store house of Ralph’s Mini – Mart. In this instance, the additional cost is the transportation cost of $30, 000 that was incurred to transport the inventory from the supplier to the warehouse.
For Ralph’s Mini – Mart, the Transfers – In = $870, 000 + $30, 000 = $900, 000 (refer to item 3 and 4)
(c) Ending balance: the ending balance is the value of inventory at the end of the financial year. This is the value of inventory that Ralph’s remains with after purchasing inventory from suppliers and selling inventory to customers. This value will take into account any inventory write- downs and obsolescence. In this instance, there has been no inventory write- downs and no inventory obsolescence or thefts.
For Ralph’s Mini – Mart, the value of ending inventory = $140, 000 (refer to item 5)
