Answer:
Inventory cycle = <u>Inventory </u> x 365 days
Cost of goods sold
Inventory cycle = <u>$75,000</u> x 365 days
$360,000
= 76.04 days
Receivable days = <u>Accounts receivable</u> x 365 days
Sales
= <u>$160,000</u> x 365 days
$600,000
= 97.33 days
Payable days = <u>Accounts payable</u> x 365 days
Cost of sales
= <u>$25,000 </u> x 365 days
$360,000
= 25.35 days
Cash conversion cycle
= Inventory cycle + Receivable days - Payable days
= 76.04 days + 97.33 days - 25.35 days
= 148.0 days
Explanation:
Cash conversion cycle is calculated as raw inventory cycle plus receivable days minus payable days. Inventory cycle is the ratio of inventory to cost of goods sold multiplied by number of days in a year. Receivable days refer to the ratio of accounts receivable to sales multiplied by number of days in a year. Payable day is the ratio of accounts payable to cost of goods sold multiplied by number of days in a year.
Options: A. Preferred B. Cumulative preferred C. Registered D. Common.
Answer:D. Common
Explanation: Common stocks are stocks which are sold either through the Stock markets or through public offerings which gives the owner a partial right to the ownership of the firm.
Common stocks owners have certain rights in Organisations which include the RIGHT TO VOTE, THE RIGHT TO ENJOY DIVIDEND etc.
Common stock is the type of stock which the majority of the investors in a corporation own.
Answer:
Explanation:
Income Statement
Calculations:
Service revenue = Service revenue+ Services performed but unrecorded = 7000+700 = 7700
Salaries and wages expense = Salaries and wages expense + Accrued but unpaid salaries and wages = 2200 + 500 = 2700
Supplies expenses = Supplies expenses - supplies that are still on hand = 1400 -350 = 1050
Income statement
Service revenue 7700
Expenses:
Salaries and wages expenses 2700
Supplies expenses 1050
Utilities expense 400
Insurance expense 400
Depreciation expenses 350
Total expenses 4900
Net Income (7700-4900) 2800
Answer:
Equipment account increases , and cash decreases with same amount
Explanation:
In the case of acquisition of a new equipment , the equipment account is debited (increase) while the cash account is credit with the same amount of money used for the purchase .
Purchase of an equipment is a balance sheet item , which means it is recorded in the balance sheet and not the income statement as it is not an expense.
The asset register must also be updated with the value of the newly acquired item
Natural law for Josh, and legal positivism for Colin.
