Answer:
A) $160,000
Explanation:
To calculate Nichola's accounts receivable at the end of the current business cycle we have to add credit sales during the fifth and sixth months:
accounts receivables = $150,000 + $10,000 = $160,000
The credit sales made during the sixth month should be received during the seventh month and the credit sales made during the fifth month should be paid next year (in 9 months). Since the business cycle is only 6 months long, any credit sale that should be collected beyond the sixth month, should be included under accounts receivables.
From the viewpoint of an outsider, an non-owner and an consultant which is a replacement analysis is most objectively conducted. When you are conducting a replacement analysis the most objectively conducted is from the view point of the three which is from an outsider, an consultant and an non-owner.
Answer:
Cash 30,000 debit (+A)
Comon Stock 30,000 Credit (+SE)
furtniture 4,600 debit (+A)
accounts payable 4,600 (+L)
accounts receivables 10,800 debit (+A)
commisions revenue 10,800 (+R)
cash 140 debit (+A)
commisions revenue 140 (+R)
Accounts payable 700 debit (-L)
cash 700 credit (-A)
salaries expense 3,500 debit (+E)
cash 3,500 credit (+A)
Explanation:
Assets (A) and Expenses (E) will icnrease form debit and decrease from credit
Liabilities (L) Revenues (R) and Stochholder equity (SE) will icnrease from credit and decrease from debit
The journal entries must be done considering the rule debit = credit all the times
Answer:
e. Affiliative selling relationship
Explanation:
In an affiliative selling relationship, the buyer needs the information related to the product which helps the buyer to buy the product. The buyer trust on the seller with a view to satisfy his expectations
This relationship fully depends upon the trust which results in the best purchasing decision.
By maintaining the trust, the seller increase its sales which helps him to achieve its sales target
Answer:
The increase in pre-tax income 20,000
Explanation:
The fixed cost of production would remain the same whether or not the special order is taken, hence, irrelevant for the decision at hand.
The sale price for the special order=10
the variable cost per unit=6
contribution margin per unit from special order=10-6=4
The increase in pre-tax income=total contribution margin from special order
The increase in pre-tax income=5000*4
The increase in pre-tax income=20,000
Hence, accepting the order is worthwhile.