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sergey [27]
3 years ago
13

Faust Company uses the perpetual inventory system. Faust sold goods that cost $2,300 for $3,600. The sale was made on account. W

hat is the net effect of the sale on the company’s financial statements? (Consider the effects of both parts of this event.)
Business
1 answer:
mario62 [17]3 years ago
4 0

Answer:

increase total assets by $1,300.

Explanation:

The net effect is shown below

The first entry is

Cost of goods sold  Dr $2,300

          To Merchandise Inventory $2,300

(Being the cost of inventory is recorded)

Now the second entry is

Account receivable Dr 3,600

       To Sales revenue 3,600

(Being the sales is recorded)

Now the net effect is

= 3,600 - 2,300

= 1,300

This 1,300 reflect the increase in the total assets

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The net profit margin ratio can mathematically be broken down as:______.
Helga [31]

Answer:

d. Tax impact x Capital structure impact x EBIT / Sales

Explanation:

The net profit margin ratio could be computed by dividing the net income from the sales and the net income is come when the expenses are deducted from revenues

Also the capital structure is the combination of equity, preferred stock, debt.

So mainly it is broken into tax impact, capital structure impact and net profit margin ratio

Therefore the option d is correct

4 0
3 years ago
Happy​ Trails, Inc. manufactures railway coaches and uses the FIFO method of process costing to record costs. The Workminusinmin
sertanlavr [38]

Answer:

80 % of materials ;  43 % of conversion costs

Explanation:

The FIFO method traces equivalent units for materials and conversion costs for the following categories :

  1. Opening Work in Process units
  2. Units started and completed
  3. Ending Work in Process units

So the units not completed from last months are the first to be completed during the month (hence To finish Opening Work in Process). During the year there are units started and completed (hence Units Started and Completed) and units started that never gets completed (hence Ending Work in Process units).

All these physical units need to be expressed to the percentage of work done on them - equivalent units.

The question is focusing on Number 3 - Ending Work in Process units. So 80 % of materials and 43 % of conversion costs were added during October for these units.

4 0
3 years ago
. El Capitan Foods has a capital structure of 36% debt and 64% equity, its tax rate is 35%, and its beta (leveraged) is 1.4. Bas
almond37 [142]

Answer:

The firm's unleveraged beta is 1.0251

Explanation:

Hamada's equation  is used to separate the financial risk of a levered firm from its business risk.

The Hamada equation:

Bu= Bl/(1 + (1 − T)(D/E))

Bl = 1.4

wd = 0.36

Tax rate = 35%

D/E = wd / (1 – wd) = 0.5625 = 56.25%

= 1.4/ (1+(1-0.35)(0.5625))

=1.4/ 1 + (0.65)(0.5625)

=1.4/1.36

= 1.0251

5 0
3 years ago
What are the three types of economic resources? Give an example of each type of resource.
fiasKO [112]

"The three types of economic resources are also referred to as factors of production. Land (including all natural resources), Labor (including all human resources), Capital (including all man-made resources), and when you combine all of those you get production. "


8 0
3 years ago
Read 2 more answers
What item should you look for when adjusting your check register?
Varvara68 [4.7K]

Answer:

The payment and the Deposit

Explanation:

The check register is adjusted using the item: payment and the Deposit and from the point of view of the bank statement the item is the withdrawal and deposit.

8 0
2 years ago
Read 2 more answers
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