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3 years ago

Ratios Calculated

Business

1 answer:

liraira [26]3 years ago

4 0

Answer:

The most commonly used base for a common size Balance Sheet is

Total Assets

Net Sales is used for Common sized Income Statement

The correct statements are:

An improvement in Inventory Turnover ratio could likely be explained by new technology that led to better inventory management

Ability to meet debt obligations has worsened as the ratio has increased

Increase in Debt equity ratio does not mean decline in credit worthiness

Market value has not decreased as the price to cash flow ratio has increased

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JCS Incorporated experienced the following transactions during its first year of business. The company purchased $16,000 of merc

12345 [234]

Answer:

46.67%

Explanation:

Gross margin is the ratio of gross profit to the total sales. The gross profit is the difference between the sales and cost of goods sold. Other cost given such as land and selling and distribution cost make up assets and operating expenses respectively.

Hence

Gross profit = $30,000 - $16,000

= $14,000

Gross margin = $14,000/$30,000

= 0.4667

The company's gross margin is 46.67%.

4 0

3 years ago

Better Corp. (BC) began operations on January 1, Year 1. During Year 1, BC experienced the following accounting events: 1. Acqui

makkiz [27]

Answer:

Better Corp. (BC)

a. Accounting Equation

Assets = Liabilities + Equity

1. Cash $7,000 Common stock $7,000

2. Cash $12,000 Bank loan payable $12,000

3. Cash $47,000 Service Revenue $47,000

4. Cash ($30,000) Op. expenses ($30,000)

5. Cash ($8,000) Cash dividend ($8,000)

6. Land $20,000 Cash ($20,000)

Assets $28,000 = Liabilities $12,000 + Equity $16,000

b. Total assets = $28,000

Total liabilities = $12,000

Stockholders' equity = $16,000

Balance Sheet as of December 31, Year 1

Assets:

Cash $8,000

Land $20,000

Total assets $28,000

Liabilities:

Bank loan $12,000

Equity:

Common stock $7,000

R/Earnings 9,000

Total equity $16,000

Liabilities and

Equity $28,000

c. Total assets = $28,000

Total liabilities = $12,000

Total equity = $16,000

d. The Land will be shown on the December 31, Year balance sheet at $20,000. The reason is that this is the acquisition cost and the land is not held for trading (no information provided).

Explanation:

a) Data and Analysis based on the Accounting Equation:

1. Cash $7,000 Common stock $7,000

2. Cash $12,000 Bank loan payable $12,000

3. Cash $47,000 Service Revenue $47,000

4. Cash ($30,000) Operating expenses ($30,000)

5. Cash ($8,000) Cash dividend ($8,000)

6. Land $20,000 Cash ($20,000)

7 0

3 years ago

Accounts Receivable As of December 31, 2016, Nala Incorporated reported accounts receivable for $275,000 less allowance for doub

juin [17]

Answer:

1. Dr Accounts receivable $180,000

Cr Sales $180,000

2. Dr Cash $125,000

Cr Accounts receivable $125,000

3. Dr Sales returns and allowances $20,000

Cr Accounts receivable $20,000

4. Dr Allowance for doubtful accounts $35,000

Cr Accounts receivable $35,000

5. Dr Accounts receivable $2,500

Cr Allowance for doubtful accounts $2,500

Dr Cash $2,500

Cr Accounts receivable $2,500

B. Dr Bad debt expense $27,500

Cr Allowance for doubtful accounts $27,500

Explanation:

A1. To record the sale on account we will debit accounts receivable as our collectible to customer and credit sales in the amount of $180,000

A2. To record the collection, we will recognize the receipt of cash so we have to debit cash and credit accounts receivable to deduct the collectible balance in the amount of $125,000

A3. When the company receives returns from the customers, it will be charged to sales returns and allowances account so we have to debit it and credit accounts receivables in the amount of $20,000 to deduct collectibles to suppliers. Said, sales returns and allowances account is a contra account of sales. Thus, any amount recorded under it will be charged against (deduction) our sales.

A4. During the write off, we will debit allowance for doubtful accounts and credit accounts receivables to reduce its amount from the worthless receivables that is deemed to be uncollectible.

A5. Collection of previously written off receivables will resort to 2 entries. First, reversal of the original entry we made during the write off. So we debit Accounts receivable and credit allowance for doubtful accounts in the amount of $2,500. Next is to record the cash we received from the customer. So debit cash and credit accounts receivable in the same amount of $2,500.

B. To record the bad debt expense, we need to compute first the ending balance of the accounts receivable.

Beg $275,000 plus sales on account of $180,000 less collection $125,000, sales return of $20,000 and write off $35,000 = $275,000.

Bad debts is 10% of the Accounts receivable, so $275,000 x 10% = $27,500

Entry:

Dr bad debt expense $27,500

Cr allowance for doubtful accounts $27,500

7 0

4 years ago

This Government Representative is appointed by the Contracting Officer to serve as a technical liaison between the Government an

Alex Ar [27]

Answer:

Contracting Officer Representative

Explanation:

An agent of a contracting officer is a person appointed in compliance with the subdivision of DFARS .and approved by the contracting agency in law to automate repetitive technological or essential functions.
A security officer is a man who shares information to interact and coordinate their events between two organizations.

by these process COR work.

3 0

4 years ago

A study examining the performance of numerous assets from the United States and around the world confirms that a. U.S. equities

antoniya [11.8K]

Answer:

d. beta did a better job of explaining the returns than standard deviation

Explanation:

Beta measures the systemic risk associated with the particular investment, it do not compute the total risk associated, which is more logical.

Standard deviation computes the total risk associated.

Some risk is natural, like the risk of floods, natural calamities, earthquake, etc:

That risk shall not counted as for comparison as that is associated universally. Further, the risk associated with particular factors like bankruptcy of a company, or some legal case issue of a company are precisely described by beta coefficient.

Thus, beta provides better details about explaining the returns.

5 0

3 years ago