Answer:
the question is incomplete, so I looked for a similar one:
Real estate commissions billed to clients amount to $4,000. Paid $700 in cash for the current month's rent. Paid $250 cash on account for office supplies purchased in transaction 2. Received a bill for $800 for advertising for the current month. Paid $2,500 cash for office salaries. Paid $1,200 cash dividends to stockholders. Received a check for $2,000 from a client in payment on account for commissions billed
<u>Income statement</u>
Service revenue $4,000
Operating expenses:
- Rent $700
- Advertising $800
- Office salaries $2,500 <u>($4,000)</u>
Net income $0
Accrual accounting recognizes both expenses and revenues when they occur, not when a cash flow is associated to them. E.g. even though only $2,000 were paid by clients, the whole $4,000 must be considered revenue.
Answer and explanation:
The statements are correct because using the perpetual inventory system implies recording purchases and returns at the same moment items are received or sold. The Cost of Goods account is updated every time their inventory exists. On the other hand, the periodic inventory system records buying or selling activities following a schedule that could be every month, quarter or once per year. The Cost of Goods account is used occasionally.
Answer:
A. Meet with his manager face-to-face.
Explanation:
A face-to-face meeting with the manager is probably the most prefered step to be taken first.
Answer:
Current Ratio: 2.49; 2.7; 1.75
Acid test ratio: 1.32; 0.64; 0.65
Explanation:
Current ratio
For Camaro:
= Current assets ÷ Current liabilities
= $ 5,915 ÷ $2,380
= 2.49
For GTO:
= Current assets ÷ Current liabilities
= $3,780 ÷ $1,400
= 2.7
For Torino:
= Current assets ÷ Current liabilities
= $6,900 ÷ $3,950
= 1.75
Acid test ratio:
For Camaro:
= (Current assets - Inventory - Prepaid expense) ÷ Current liabilities
= ($5,915 - $2,375 - $400) ÷ $2,380
= $3,140 ÷ $2,380
= 1.32
For GTO:
= (Current assets - Inventory - Prepaid expense) ÷ Current liabilities
= ($3,780 - $2,180 - $700) ÷ $1,400
= $900 ÷ $1,400
= 0.64
For Torino:
= (Current assets - Inventory - Prepaid expense) ÷ Current liabilities
= ($6,900 - 3,450 - $900) ÷ $3,950
= $2,550 ÷ $3,950
= 0.65
Answer:
The correct answer is Net cash= 96.100,00
Explanation:
Depreciation expenses must be added back to net income.
Also, Increase in accounts payable is added to net income
Gain on sale of land and Increase in merchandise inventory are subtracted from net income
So,
Indirect Method
Net income 86.300,00
Depreciation expense 13.000,00
Increase in accounts payable 7.150,00
Gain on sale of land (7.300,00)
Increase in merchandise inventory (3.050,00)
Net cash 96.100,00
