Answer:
The correct answer is option (b) The present value of the lease payments less the present value of the guaranteed residual value (if any)
Explanation:
For balance sheet, the liability of lease is measured as the present value of lease payments less the present value of the guaranteed residual value.
Normally, the equipment been leased by the company will record the equipment as an asset, and a liability will be recognize by the company on the balance sheet, by an amount identical to the present value of the lease minimum payments lease residual value guaranteed, if there are any.
Answer:
-
$300
- $100
- $300
Explanation:
1. AuctionCo takes control of this used bicycle before the sale and pays $200 to the supplier.
Having taken control of the bicycle before the sale, the transaction will be treated as that of AuctionCo so the entire revenue will be theirs.
= $300
2. AuctionCo never took control.
Revenue will be the agency fee;
= Sales price - Supplier sales price
= 300 - 200
= $100
3. Assume AuctionCo promises to pay $200 to the supplier regardless of whether the bicycle is sold but the bicycle will continue to be shipped directly from the supplier to the customer.
= $300
Revenue is $300 because by being the ones to pay the supplier regardless of the occurrence of the transaction, they take control.
Answer:
picture under the insert tab ?
Explanation:
none others make sense
Answer:
a. 12.88 times
b. 28.35 days
c. 28.35 days
Explanation:
a. Receivables turnover
Receivables turnover = Credit sales ÷ Receivables
= $6,787,626 ÷ $527,164
= 12.88 times
b. Days’ sales in receivables
Days' sales in receivables = 365 days ÷ Receivables turnover
= 365 ÷ 12.88
= 28.35 days
c. On average it would take 28.35 days for credit customers to pay off their balances during the last year.