Answer:
Credit Sales = $48100
Explanation:
The credit sales can be calculated by reversing the formula for Closing accounts receivables.
The formula for closing accounts recevables is,
Closing accounts receivables = Opening accounts receivables + Credit sales - collections from accounts receivables
To caculate Credit sales, the formula will be:
Credit sales = Closing accounts receivables + Collections from Accounts receivables - Opening accounts receivables
Credit sales = 14000 + 53200 - 19100 = $48100
Answer:
(a)
(1) return on assets = 8.6%
(2) asset turnover = 2.5 times
(3) profit margin = 3.45%
Explanation:
Given
Net sales = $10,700.0
Net earnings = $365.0
Total assets, ending = $4,155.0
total assets, beginning = $4,340.0
(a)
(1) Return on assets = net income/average total assets
= 365/((4155 + 4340)/2)
= 365/(8495/2)
= 730/8495
= 0.0859
≈ 0.086 ≈ 8.6% (rounded to 1 decimal place)
(2) Asset turnover = net revenue/average total assets
= 10700/((4155 + 4340)/2)
= 10700/(8495/2)
= 21400/8495
= 2.5 times (rounded to 1 decimal place)
(3) Profit margin = net earning/net sales
= 365/10700
= 0.034 ≈ 3.45% (rounded to 1 decimal place)
Answer:
$1,242,000
Explanation:
The new machine is to be recorded at its Fair Value which is $1,242,000 because the exchange has a commercial substance. Asset forgone is credited by its original cost, and accumulated depreciation till date of exchange is debited. Cash paid and loss or gain is adjusted as required. But the new asset is debited by the amount of its Fair Value on the day of exchange.
Answer:
$267,142.86
Explanation:
The sales less the variable cost gives the contribution margin. The contribution margin less the fixed cost gives the net operating income.
As such, the total sales less the total cost gives the net income.
Let the required sales be $Y
Y - 0.3Y - 147,000 = 40,000
0.7Y = 40,000 + 147,000
Y = 187,000/0.7
= $267,142.86
