Answer:
July collection = $41,780
Explanation:
Sales in the month of July = $42,000
Given,
10% of each month's sales will represent cash sales
75% of the balance will be collected in the month following the sale
17% the second month
6% the third month
Therefore, we also need the sales amount of April, May, and June because the collection continues up to 4th month.
Therefore, Task company will collect total cash in the month of July =
6% from the sale of April = $30,000*6% = $ 1,800
17% from the sale of May = $34,000*17% = $ 5,780
75% from the sale of June = $40,000*75% = $30,000
<u>10% from the sale of July = $42,000*10% = $ 4,200 </u>
$ 41,780
Answer:
a. Net income in 2014 is $5.00 million; Net income in 2015 is $11.25 million; and Net income in 2016 is $8.75million.
b. The best summary is that under generally accepted accounting principles (GAAP), the cost-to-cost method is a method that is acceptable to be applied to contracts that span more than one accounting period.
Therefore, the cost-to-cost method is employed in calculating the revenue and net income for Frankel Construction for each of the years 2014, 2015 and 2016.
Explanation:
a. Calculate the amount of revenue, expense, and net income for each of the three years 2014 through 2016 using the cost-to-cost method.
Note: See the attached excel file for the calculations.
Cost-to-cost method can be described as a cost and revenue recognition approach in which all costs recorded to date on a project are divided by the total expected costs to be incurred on the project in order to obtain the overall percentage of completion of the project which is employed in estimating revenue and net income.
b. What best summarizes our conclusion about the usefulness of the cost-to-cost method for this company?
The best summary is that under generally accepted accounting principles (GAAP), the cost-to-cost method is a method that is acceptable to be applied to contracts that span more than one accounting period.
In this question, the cost-to-cost method is employed in calculating the revenue and net income for this company for each of the year 2014, 2015 and 2016.
If the annual interest rate printed on the face of a bond is 12 percent, the face value of the bond is $1,000, and the current market price of the bond is $1,2000, what is the current yield on the bond?
10.0 percent.
Answer:
Lytle River Company
c. the source of the water, and any contaminants and health concerns.
Explanation:
When Lytle River Company sends to every household that it supplies with water an annual statement, the statement should indicate the source of the water that Lytle River Company supplies. It should also contain information about possible contaminants and other health concerns to enable the households understand how the water they drink is treated and how they should use it. This information is important to safeguard households. It will also help them to know the parties to be held liable for pollution problems.
I think its ''Lease payments are likely to be lower than finance payments" but I'm not sure