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sukhopar [10]
3 years ago
15

Suppose your firm receives a $ 3.2 million order on the last day of the year. You fill the order with $ 1.7 million worth of inv

entory. The customer picks up the entire order the same day and pays $ 1.4 million upfront in​ cash; you also issue a bill for the customer to pay the remaining balance of $ 1.8 million in 30 days. Suppose your​ firm's tax rate is 0.0 % ​(i.e., ignore​ taxes). Determine the consequences of this transaction for each of the​ following: a. Revenues b. Earnings c. Receivables d. Inventory e. Cash
Business
1 answer:
AURORKA [14]3 years ago
5 0

Answer & Explanation:

<u>a.- Revenues: </u>Increase for 3.2 millions

It will be recognize for the entire order, as it was deliveried entirely within the accounting period.

<u>b.- Earnings: </u> Increase for 1.5 millions

The earnings for the business will be the net between the revenues and expenses.

3.2 revenues - 1.7 expenses = 1.5 earnings

<u>c.- Receivables: </u> Increase for 1.8 millions

It will increase for the unpaid portion ofthe order.

<u>d.- Inventory</u> Decrease for 1.7 millions

It will decrease for the entire cost of the order, as it was within this accounting period both, revenues and the expense related to it, will be recognize.

<u>e.- Cash:</u> Increase for 1.4 millions

It will increase for the amount received from the customer. As it was no payment from the business in the transaction.

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lara31 [8.8K]

Answer: (B) Disclose

Explanation:

According to the question, the salesperson should disclose about the home that he has listed that the home was only used as the meth lab at once in the specific period of time.

Disclose is the process that helps in revealing the data or information about the specific things or the different types of financial statements.

The main advantage of the disclosure is that it helps in understanding the things more clearly without any interruption and makes the thinks more crystal clear.

 Therefore, Option (B) is correct.

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3 years ago
The Rockies Division operates as a profit center. It reports the following for the year. Budgeted Actual Sales $1,969,700 $1,829
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Answer:

IMPORTANT NOTE: The data of the calculation was obtained from an online research.

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Explanation  

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3 years ago
The following information is available for MVF Company(dollar amounts are in millions)
Klio2033 [76]

Answer:

                                           2016            2015          2014           2013

gross profit%                     26.29%        22.58%      22.45%     22.41%

Inventory turnover          6.58               7.64            7.6             7.94

cost of material %          59.89%       51.76%         89.82%       51.10

b. gross%  has increased this may be due to a high demand, and intense marketing.

inventory turnover has decreased this may be due to new competition, or introduced product(new product)

cost of material purchased % it has increased in 2016, this may be due to increased production and effective use of material.

Explanation:

gross profit % =gross profit/ sales

gross profit = sales less cost of sales

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average inventory = (opening inventory + closing inventory )/2

cost of material purchased/ cost of finished goods

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Answer:

taxing those with higher incomes results in less work effort.

Explanation:

In normative ethics, utilitarian ethics (utilitarianism) can be defined as a theory of morality or ethical theory that typically involves engaging in actions that facilitate pleasure, joy or happiness while completely opposing any action capable of causing harm and unhappiness.

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The three (3) main principles (axioms) of utilitarian ethics (utilitarianism) include the following;

I. The only thing with an intrinsic value is pleasure or happiness.

II. If an action promotes happiness or pleasure, then it is right; it is wrong if it causes harm or unhappiness (sadness).

III. The happiness of everyone in a group or society should count equally.

One of the problems associated with the utilitarianism is that it does not recognize that taxing those with higher incomes results in less work effort.

7 0
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