Answer:
C. $13,700
Explanation:
Given that;
Beginning retained earnings = $4,000
Net income during the period = $10,000
Dividends = $300
Computation of Ending balance in the retained earnings account
= Beginning retained earnings + Net income during the period - Dividends
= $4,000 + $10,000 - $300
= $13,700
Therefore, the ending balance in the retained earnings account is $13,700
Answer:
average cost is increasing
Explanation:
Answer: $3,400
Explanation:
Gross Profit = Sales revenue - Cost of Goods sold
Cost of good sold = Opening stock + Purchases of inventory - Closing stock of inventory
= 0 + 4,400 - 1,800
= $2,600
Gross Profit = 6,000 - 2,600
= $3,400
Answer:
The company's cash conversion cycle is 75 days
Explanation:
The conversion cycle is the number of days that a business takes to convert its investment in inventory into cash flowing from the purchase and sales of the business.
Conversion cycle = Payable days + Inventory in Stock days + Receivable days
where
Payable days = Purchases term = 30 days
Inventory in stock = Number of days until inventory remains unsold = 60 - 30 days = 30 days ( As payable days are already included in inventory conversion days )
Receivable days = Sales term = 15 days
Placing values in the formula
Conversion cycle = 30 days + 30 days + 15 days
Conversion Cycle = 75 days
Answer:
A) Valuable assets such as the company's reputation, the quality of its work force, and the strength of its management are not captured on the balance sheet.
Explanation:
As we know that the balance sheet records the assets, liabilities and the equity of the company. Now the main problem with the balance sheet is that the valuable assets such as reputation of the company, work force quality, management strength would not captured here as it only records the monetary transactions.
Therefore the correct option is a.
