Answer:
$210,000.
Explanation:
Given:
Cost of goods sold = $420,000
Sales revenue = $800,000
Operating expenses = $170,000
Question asked:
What amount will the company report for operating income ?
Solution:
As we know, Operating Income = Gross Profit- Operating Expenses
First of all we will find gross profit,
Gross Profit = Net Sales – Cost of goods sold
= $800,000 - $420,000
= $380,000
Now, Operating Income = Gross Profit- Operating Expenses
= $380,000 - $170,000
= $210,000
Therefore, consider the following year-end information for a company, its Operating Income is $210,000.
Answer:
c. $15,000
Explanation:
The explanation for this question is given in the attachment below.
Answer:
B) IRR is 3%. Reject the project.
Explanation:
We can use an excel spreadsheet to calculate the internal rate of return (IRR) for this investment:
we can use the IRR function =IRR(values,[guess])
where:
- value 1 = -238160
- value 2 to 6 = 52000
- guess = optional, not required
=IRR(-238160,52000,52000,52000,52000,52000) = 3%
I don't really understand your question but it is bad to pay only the minimum towards your credit card, interest rates will keep adding to your bill.
Answer:
$20,400
Explanation:
The computation of the bad debt expense for 2020 is shown below:
Ending balance of Allowance for Uncollectible Accounts = Beginning balance of Allowance for Uncollectible Accounts + bad debts -write off amount
where,
Ending balance of allowance for uncollected accounts is
= $800,000 × 5%
= $40,000
Beginning balance of Allowance for Uncollectible Accounts is $40,000
And, the written off amount is
= $28,800 - $8,400
= $20,400
So, the bad debt expense is
= $40,000 - $40,000 + $20,400
= $20,400
We simply applied the above formula so that the bad debt could arrive
