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3 years ago

Garcia Industries has sales of $167,500 and accounts receivable of $18,500, and it gives its customers 25 days to pay.

Business

1 answer:

miv72 [106K]3 years ago

6 0

Answer:

c. $488.77

Explanation:

Step 1: Calculate Accounts Receivable for Industry DSO

The accounts receivable for industry DSO is calculated as below:

Accounts Receivable (Industry DSO) = Sales Value*Industry Average DSO/Total Days in the Year

Using the values provided in the question in the above formula, we get,

Accounts Receivable (Industry DSO) = 167,500*27/365 = $12,390.41

_____

Step 2: Calculate Value of Freed-Up Cash

The value of freed-up cash is determined as below:

Freed-Up Cash = Value of Accounts Receivable at Company's DSO - Value of Accounts Receivable for Industry Average = 18,500 - 12,390.41 = $6,109.59

_____

Step 3: Calculate Effect of Net Income

The effect on net income is calculated as below:

Effect on Net Income = Freed-Up Cash*Rate of Return = 6,109.59*8% = $488.77

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_ is the actual amount each common stockholder would expect to receive if a firm's assets are sold for their market value, cre

Alona [7]

Answer: Liquidation value

Explanation:

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This organizational value is lower as compared to the market value and it has less time for selling the products in the open market.

According to the given question, the liquidation value is refers as the actual amount of the stockholder expected value value in the market. Therefore, Liquidation value is the correct answer.

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3 years ago

On January 1, 2021, Splash City issues $460,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and

Effectus [21]

Answer:

The journal entry is shown below:

Explanation:

Journal Entry.

Jan.1 Cash A/c Dr $460,000

To Bonds payable A/c $460,000

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To Cash A/c $18,400 ($460,000×4% = $18,400)

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To Cash A/c $18,400 ($460,000×4% = $18,400)

(Interest is being recorded)

3 0

3 years ago

The Corner Hardware has succeeded in increasing the amount of goods it sells while holding the amount of inventory on hand at a

katrin [286]

Answer:

decrease in the day's sales inventory

Explanation:

Corner Hardware has succeeded in increasing the number of goods it sells while holding the amount of inventory on hand, cost per unit, and the selling price per unit at a constant level.

This situation will be reflected in the firm's financial ratios in the form of a decrease in the day's sales inventory.

5 0

2 years ago

George is paid for holidays, sick days, vacation, personal days, and jury duty. these are his _____. paid leave benefits insuran

MariettaO [177]

I think the correct answer from the choices listed above is the first option. <span>George is paid for holidays, sick days, vacation, personal days, and jury duty. These are his paid leave benefits. Hope this answers the question. Have a nice day.</span>

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3 years ago

Read 2 more answers

At the beginning of 2020, Concord Company acquired a mine for $3,251,600. Of this amount, $124,000 was ascribed to the land valu

Sav [38]

Answer:

A. $737,520

B. $530,320

Explanation:

a. Computation for the total amount of depletion for 2020.

First step is to calculate the Depletion Rate

Depletion Rate = ($3,251,600 - $124,000 + $49,600 + $210,800)/12,100,000

Depletion Rate= $3,388,000/ 12,100,000

Depletion Rate= 0.28

Now let calculate the total amount of depletion for 2020.

2020 Total amount of depletion= 0.28 × $2,634,000

2020 Total amount of depletion= $737,520

Therefore the total amount of depletion for 2020 is $737,520

B. Computation for the amount that is charged as an expense for 2014 for the cost of the minerals sold during 2020.

Expense amount charged= ($737,520/$2,634,000)* 1,894,000

Expense amount charged=0.28 *1,894,000

Expense amount charged=$530,320

Therefore the amount that is charged as an expense for 2014 for the cost of the minerals sold during 2020 is $530,320

7 0

3 years ago