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Firlakuza [10]
3 years ago
9

Kingbird, Inc. had the following transactions involving current assets and current liabilities during February 2017. Feb. 3 Coll

ected accounts receivable of $15,800. 7 Purchased equipment for $43,200 cash. 11 Paid $5,400 for a 1-year insurance policy. 14 Paid accounts payable of $12,200. 18 Declared cash dividends, $5,800. Additional information: As of February 1, 2017, current assets were $138,300 and current liabilities were $35,800. Compute the current ratio as of the beginning of the month and after each transaction. (Round all answers to 2 decimal places, e.g. 1.83 : 1.) Current ratio as of February 1, 2014 :1 Feb. 3 :1 Feb. 7 :1 Feb. 11 :1 Feb. 14 :1 Feb. 18 :1
Business
1 answer:
Snezhnost [94]3 years ago
4 0

Answer:

Beginning of the month = 3.86 : 1

Feb 3 = 3.86 : 1

Feb 7 = 2.66 : 1

Feb 11= 2.66 : 1

Feb 14 = 3.51 : 1

Feb 18 = 2.82 : 1

Ending of the Month = 2.82 : 1

Explanation:

Effect on current assets and current liabilities for each transaction:

<u>current assets  </u>                                       138,300

collected AR   no effect

we are chaging one asset (AR) for another (cash)

purchase of long-term asset on cash (43,200)

prepaid insuance for 1 year no effect

we change one asset (cash) for another(prepaid insurance)

paid account payable                          (12,200)

Ending Current assets                          82,900

<u>current liabilities  </u>              35,800

paid account payable       (12,200)

dividend payable                5,800

Ending current liabilities    29,400

Current ratio:

\frac{current \: assets}{current \: liabilites }

beginning of the month

138,300 / 35,800 = 3,86

Feb 3 after Ar collected, the ratio is the same as no-change occur

Feb 7 current asset decreased by 43,200

95,100 / 35,800 = 2,66

Feb 11 after the insurance purchase, the ratio is the same as no-change occur

Feb 14 both decrease by 12,200

82,900/23,600 = 3,5127 = 3.51

Feb 18 current liabilities increase by 4,800

82,900 / 29,400 = 2.82

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Answer:

option D ( ii, iii and iv )

Explanation:

Required financial statements that should be issued by governmental funds and by proprietary  funds include the following among others:

  • statement of revenues, expenditures and changes in fund balances,
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These among others are expected to reflect/ be included in Financial statement issued by Governmental funds and proprietary funds.

8 0
3 years ago
Sonny's Surfer Shop produces and sells custom surf boards. Assume that labor is the only input that varies for the firm. The fir
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Answer:

B) For the 11th worker, the value of the marginal product of labor is $4,000.

Explanation:

The marginal product of labor (MPL) of a company is the total change in output achieved by hiring an additional worker. To calculate the MPL we have to multiply the change in output (measured in units) times the revenue generated by every extra unit of output.

In this case, the MPL = 2 surfboards x $2,000 per surfboard = $4,000

5 0
3 years ago
The following standards for variable manufacturing overhead have been established for a company that makes only one product: Sta
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Answer:

$11.165 unfavorable

Explanation:

The formula to compute the variable overhead efficiency variance is shown below:

= (Actual direct labor hours - standard direct labor hours) × variable overhead per hour

where,  

Actual direct labor hours is 2,975

And, the standard direct labor hours equal to

= 250 units × 9

= 2,250

Now put these values to the above formula  

So, the value would equal to

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6 0
3 years ago
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kobusy [5.1K]
First drop down box: Mission
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3 years ago
Haven Company uses the percentage of receivables method for recording bad debt expense. The accounts receivable balance is $600,
Katena32 [7]

Answer:

Debit Bad debt expense   $19,000

Credit Allowance for doubtful debt   $19,000

Explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.  

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

Where a debit that had previously been determined to have gone bad gets settled, debit cash and credit bad debt expense.

Amount that may be uncollectible

= 4% *  $600,000

= $24,000

Given that the Allowance for Doubtful Accounts has a $5,000 credit balance before adjustment, the additional amount to be adjusted for

= $24,000 - $5,000

= $19,000

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3 years ago
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