Answer:
The answer is low
Explanation:
Liquidity or Solvency is the ability of a business to pay its debt(both in short term and long term).
In the question, Coleman Luggage has a liability of 879,000 and the total current assets(which can be used to offset the liability) are cash balance of $175,000 + inventories of $220,000 + Other short-term assets of $85,000 = $480,000.
To know its solvency (net working capital) = Asset - liability
$480,000-870,000
= -$390,000.
Coleman Luggage has a low solvency because his asset cannot cover all his liabilities. His asset is less than his liabilities
Answer:
the answer of the question is true
Answer:
Explanation:
There is a limit on the amount of charitable contribution that a taxpayer can claim as deduction and it depends on the type of property that a taxpayer donates and nature of charity organization. A taxpayer can deduct up to 60% of adjusted gross income (AGI) in the case of cash contributions to public charity. When he contributes capital gain property, he can deduct up to 30% of adjusted gross income in the case of public charity. When he contributes capital gain property to private non operating foundation, he can deduct up to 20% adjusted gross income.
Calculate the maximum amount of deduction as follows
Answer:
C. $52,100
Explanation:
Account Receivables On December 31, 2016,
= $53,800
Estimate of receivables that will not be collected is an indication of receivables gone bad.
Such receivables are usually written off the books by Crediting account receivables and debiting bad debit expense.
If it is only probable that the receivables may not be collected, the entries would be credit to allowance for bad debt and a debit to bad debt.
In this instance, the debt will not be collected hence
Debit bad debt expense $1,700
Credit Trade receivables $1,700
Being entries to recognize receivables that will not be collected.
Account receivables adjusted balance = $53,800 - $1,700
= $52,100