Answer:
Sales $480,000
<em>Less: Expenses (Bal Figure) $419,500</em>
Less: Write Off Account <u>$7,700 </u>
Net Income <u>$52,800</u>
If Allowance Method Is Used
Sales $480,000
Less: Expenses $<em>419,500</em>
Less: Write Off Account (1.5% of 480,000) <u>$7,200</u>
Net Income <u>$53,300
</u>
Answer:
Issuance of common stock to acquire land is a non-cash investing and financial activity.
Explanation:
Payment of note payable, payment of cash dividend and purchase of inventory on account all involve cash transactions.
Here, the issuance of common stock is a financial activity. Acquiring land can be categorized as an investing activity. To acquire land common stock is issued, cash is not involved.
So, the issuance of common stock to acquire land is non-cash investing and financial activity.
Answer:
Explanation:
The maximum dollar increase in sales that can be sustained assuming no new equity is issued can be calculated as follows;
Step 1 : Return on Equity = Net Income/ Total Equity x 100
= $ ( 5,621/ 48,800) x 100
= 11.52% (approx)
Step 2- Dividend Payaout Ratio = 40%
Hence, retention ratio = 100% - 40%
= 60%
Step 3- Sustainable Growth rate equation = [(Return on Equity x retention Ratio)/([1- (Return on Equity x retention ratio)]
= [(0.1152 x 0.6)/[1 - (0.1152 x 0.6)]
= [( 0.0691)/[1-(0.0691)]
= 0.0742 = 7.42% (approx)
Hence, Maximum dollar increase in sales = ($42,800) x 7.42%
= $3177.01 (approx)
Uhhh well how much Equity has been profitable and it’s usually around 10 percent
Answer:
earned by selling goods or services to customers.
Explanation:
Revenues are earned by selling goods or services to customers.
This ultimately implies that, revenues are typically the income that are being generated from the provision of goods and services to meet the needs or wants of customers, as well as discounts and deductions for returned products.
<em>Generally, revenues forms the first line item reported on the income statement or is the beginning of an income statement</em>.