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MariettaO [177]
3 years ago
7

Harbert, Inc. had a beginning balance of $12,000 in its Accounts Receivable account. The ending balance of Accounts Receivable w

as $10,500. During the period, Harbert collects $72,000 of its accounts receivable. Harbert incurred $63,000 of cash expenses during the accounting period.
Required
a. Based on the information provided, determine the amount of revenue recognized during the accounting period.
b. Based on the information provided, determine the amount of net income earned during the accounting period.
c. Based on the information provided, determine the amount of cash flow from operating activities.
Business
1 answer:
irakobra [83]3 years ago
4 0

Answer:

a. $70,500

b. $7,500

c. $9,000

Explanation:

a. The computation of the amount of revenue is shown below:-

Amount of revenue = Ending balance of accounts receivable + Cash collected - Beginning balance of accounts receivable

= $10,500 + $72,000 - $12,000

= $70,500

b. The computation of net income earned during the accounting period is shown below:-

Net income = Revenue generated - Expenses

= $70,500 - $63,000

= $7,500

c. The computation of amount of cash flow from operating activities is shown below:-

Net cash flow from operating activities = Cash collection - Amount paid for operating expenses

= $72,000 - $63,000

= $9,000

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Cash , Credit and debit

7 0
3 years ago
In 2017, Randa Merchandising, Inc., sold its interest in a chain of wholesale outlets, taking the company completely out of the
Tju [1.3M]

Answer:

Randa Merchandising, Inc.

1. Indication of where each of the following income-related items for this company appears on its 2017 income statement.

Income Statement

1. Net Sales

2. Cost of goods sold

3. Depreciation expense

4. Income taxes expense

5. Gain on state's condemnation of company property, net of tax

6. Gain on sale of wholesale business segment, net of tax

7. Loss from operating wholesale business segment, net of tax

8. Loss of assets from a meteor strike, net of tax

Explanation:

Randa's income statement is prepared using a step-by-step approach.  It starts with the net sales from which the cost of goods sold is deducted to arrive at the gross profit.  Thereafter, the operating expenses are deducted to obtain the operating income.  Based on this, income taxes are computed before arriving at the operating income after taxes.  And then, the extraordinary items are disclosed (net of taxes) before arriving at the net income.

7 0
2 years ago
Credit offered in the form of ____________ is most common in department and clothing stores and other high-volume outlets, where
GuDViN [60]

Answer:

retail charge cards

Explanation:

A credit card can be defined as a small rectangular-shaped plastic card issued by a financial institution to its customers, which typically allows them to purchase goods and services on credit based on the agreement that the amount would be paid later with an agreed upon interest rate.

Hence, the use of credit cards by consumers broadens a small company's customer base.

This ultimately implies that, small businesses or companies who avail their customers the opportunity to pay using a credit card will increase the number of customers that would patronize them because they are typically buying the goods and services on credit.

Generally, there are three (3) main types of credit card and these includes;

I. Debit card.

II. Prepaid card.

III. Retail charge cards.

A retail charge card can be defined as a type of credit card commonly issued by retailers to their customers in order to avail the customers an ability to charge their goods and services to a specific amount that has been established prior to a purchase.

Hence, it is most common in merchant department, car rental firms, oil companies, clothing stores and other high-volume outlets, where customers are likely to make several purchases each month.

5 0
2 years ago
If an employee sits down with a supervisor and sets a goal to reduce waste on the assembly line by 3%, the reward the supervisor
FrozenT [24]

Answer:

Bonus.

Explanation:

Just as the name sounds, so is it an additional pay that is been given to an employee seen to appear above their regular earnings, this bonus is seen to be used by many organizations in different forms are categorically given to employees or a team that achieves significant goals. This little pay go a very long way in the life, performance and output of a team or employee. Also, employee morale, output and also motivation. Due to the positive returns from this act, a lot of organisations tends to practice this ritual consistently because every goal or target reached by an employee or or team brings the organisation closer to success.

6 0
3 years ago
Forty percent of a firm’s sales are collected during the first month after the sale; 35% are collected during the second month f
bekas [8.4K]

Answer:

$26,250

Explanation:

If may sales were $75,000

July collection for may sales will be?

May..... sales month

June... first month after sales

July ... second month fater sales..of which 35 % is collected

July's collection will be 35/100 x 75,000

=0.35 x$75,000

=$26,250

7 0
3 years ago
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