Answer:
a. 12 times
b. 30.42 days
Explanation:
Data provided in the question
Sales = $4,560,000
Average account receivable = $380,000
So, The computation is shown below:
a. Account receivable turnover ratio is
= Sales ÷ average account receivable (net)
= $4,560,000 ÷ $380,000
= 12 times
b. Now the number of days sales in receivable is
= Total number of days in a year ÷ account receivable turnover ratio
= 365 days ÷ 12 times
= 30.42 days
It depends what the setences are
Answer:
1. Dr Cost of goods manufactured 2000
Cr supplies 2000
2.Dr Insurance expense 100
Cr Prepaid insurance 100
3. Dr Depreciation expense 75
Cr Accumulated depreciation 75
4. Dr unearned revenue 800
Cr service income 800
5. Dr Account receivable 280
Cr Service revenue 280
6. Dr Interest expense 70
Cr Interest payable 70
7. Dr Salaries expense 1400
Cr Salaries payable 1400
Explanation:
1. At the end of reporting 500 supplies were at hand (2500-500)= 2000 used and closes in to cost of goods manufactured.
2.Prepaid insurance was 600 and expires 100 of the month.(600-100)=500 will be prepaid.
4. Revenue is earned which was unearned and collection was recorded and liability created of that amount,this is done because of matching principle.
Answer:
Overhead incurred for may is $8,250
Explanation:
Factory overheads are costs that don not contribute directly to production.They are also know as indirect costs and include items such as insurance costs,administrative expenses, licensing, insurance, facility upkeep costs etc.
In B&T's case factory overhead items include:
a) Indirect labor - $6300
b) Property taxes on production facility - $810
C) Factory heat,lights and power - $970
d) Insurance of plant and equipment <u>- $170</u>
Total factory Overhead for May = Indirect labor + Property taxes on production facility +Factory heat,lights and power + Insurance of plant and equipment
Total factory Overhead for May = 6300 + 810 + 970 + 170 = $8250.
Answer: Group A
Explanation:
Price Elasticity of demand refers to the sensitivity of quantity demanded given a change in price. In other words, how much will quantity demanded change if price changes. Higher elastcities mean that when prices change, their quantity demanded changes more. For instance, an elasticity of demand of 2 means that when prices rise by 2%, demand will decrease by 4%.
The group that will be paying the most therefore will have to be the group that is least sensitive to paying that high price. That would be Group A. As they are not very sensitive to price changes with an elasticity of 0.2, the Monopoly can increase their price to a higher point than others knowing that they won't demand less goods.
