1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
levacccp [35]
3 years ago
15

Selma operates a contractor's supply store. She maintains her books using the cash method. At the end of 2020, her accountant co

mputes her accrual basis income that is used on her tax return. For 2020, Selma had cash receipts of $1,400,000, which included $200,000 collected on accounts receivable from 2019 sales. It also included the proceeds of a $100,000 bank loan. At the end of 2020, she had $250,000 in accounts receivable from customers, all from 2020 sales.
Required:
a. Compute Selma's accrual basis gross receipts for 2020.
b. Selma paid cash for all of the purchases. The total amount paid for merchandise in 2014 was $1.3 million. At the end of 2019, she had merchandise on hand with a cost of $150,000. At the end of 2015, the cost of merchandise on hand was $300,000. Compute Selma's gross income from merchandise sales for 2020.
Business
1 answer:
Murljashka [212]3 years ago
7 0

Answer:

A. Gross receipts $1,350,000

B. Gross income $200,000

Explanation:

a. Computation accrual basis gross receipts .

Cash received$1,400,000

Less: Beginning accounts receivable(200,000)

Less: Bank loan(100,000)

Add: Ending accounts receivable250,000

Gross receipts $1,350,000

Therefore Selma's accrual basis gross receipts for 2020 will be $1,350,000

b.Computation for gross income

Gross receipts $1,350,000

Cost of goods sold:

Purchases $1,300,000

Beginning inventory 150,000

Less: Ending inventory(300,000) (1,150,000)

Gross income $200,000

($1,350,000-(1,150,000)

Therefore Selma's gross income from merchandise sales for 2020 will be $200,000

You might be interested in
A firm with unlimited funds must evaluate five projects. Projects 1 and 2 are independent and Projects 3, 4, and 5 are mutually
neonofarm [45]

Answer:

4, 1, 2,

Explanation:

Here are the projects and their returns

Project Return (%)

1 14

2 12

3 10

4 15

5            12

the firm should choose the project with the highest returns

Projects are mutually exclusive if the projects cannot occur at the same time. If one project is chosen, the others cannot be chosen.

Project 3,4,5 are mutually exclusive. If one of the projects are chosen, other projects cannot be chosen.

Project 4 has the highest return, so it would be chosen first.

the next project with the next highest return is project 1 and then project 2

3 0
3 years ago
Keith enjoys cutting hair and he just graduated from a cosmetology program. He has opened up his own shop, but it has not grown
marysya [2.9K]

Answer:

Franchises.

Explanation:

A franchise is formed when a third party is given the right to market products using the brand name of a parent company. There is usually an agreement between the parent company and the third party on profit sharing from the franchise.

In this scenario Keith wants to try a brand recognition of a national chain, but he wants to stay in his local area and be the owner of the shop.

The best option is to form a franchise where he can use the national brand to grow his business locally.

3 0
3 years ago
If a company has a unique strength relative to its competitors, based on quality, time, cost, or innovation, then the company is
Sunny_sXe [5.5K]
The answer is: A competitive advantage
6 0
2 years ago
Why does my dad stick his weener up my dog
vivado [14]
What the heck uhmmmm
6 0
3 years ago
Read 2 more answers
The​ __________ of an automobile​ manufacturer, such as​ porsche, mazda,​ toyota, or general​ motors, might be based on a unique
tatiyna
Positive corporate brand image.

--
Everybody wants to look good and nice to other people, so thats why we have different types of view on people and have the negative and positive side on things to them. Especially cars.

--
Please give me brainliest. 
7 0
3 years ago
Other questions:
  • What are the two types of state budgets?
    8·1 answer
  • The Ishares Bond Index fund (TLT) has a mean (average) and annual standard deviation of realized returns of 6% and 10%, respecti
    8·1 answer
  • Lee Company has a current ratio of 2.65. The acid test ratio is 2.01. The current liabilities of Lee are $45,000. The dollar amo
    5·1 answer
  • The Treasury Department auctioned $21 billion in 3-month bills in denominations of $10,000 at a discount rate of 4.965%. What wo
    8·1 answer
  • Consider an economy with only two groups of​ people: Wage earners and Goods sellers. If the price level increases by​ 20% while
    5·1 answer
  • Roberson Corporation was organized on January 1, 2014, with authorized capital of 750,000 shares of $10 par value common stock.
    15·1 answer
  • According to an article in the Wall Street Journal​, in​ 2016, ​Moody's Investors Service has agreed to pay​ $130 million to end
    8·1 answer
  • Some of the most common applications of real options are with property and insurance. A real estate option grants the holder the
    7·1 answer
  • A common advantage of a promotion is that
    14·2 answers
  • Leahy Corp. sells $300,000 of bonds to private investors. The bonds are due in five years, have a 6% coupon rate, and interest i
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!