Answer: income statement and the statement of cash flows
Explanation:
Answer:
net purchases = $374,400
cost of goods purchased = $391,500
Explanation:
net purchases = total purchases - purchase returns and allowances - purchase discounts = $392,500 - $11,900 - $6,200 = $374,400
cost of goods purchased = net purchases + freight in costs = $374,400 + $17,100 = $391,500
The difference between the lowest price (that
a firm would have been keen to accept) and the price it actually receives from
the sale of a product is called producer surplus.
<span>Producer Surplus is an economic
measurement. Total economic welfare is equal to the addition of consumer
surplus and producer surplus.</span>
Answer: Option C
Explanation: Implicit cost or opportunity cost is the loss of profit from best alternative that is foregone. It is the cost directly paid by the individual himself rather than paying it to others as in case of explicit costs.
Implicit costs are not deducted while calculating accounting profit but they are when calculating economic profit. These costs usually remain fixed as the alternative has been rejected already.
So, from the above we can conclude that option C is correct.
Answer:
Days Sales outstanding is the average number of days that a business take to collect the cash after making sales on account.
Days Sales outstanding = ( 40% x 10 days ) + ( 60% x 70 days ) = ( 0.4 x 10 ) + ( 60% x 70 ) = 46 Days
Receivable per day = 1,921,000/365
Average Receivables = $5,263.01 x 46 = $242,098.63
Trade credit to customer who take discount = (3%x365)/(97%x20) = 56.44%
Trade credit to customer who don't take discount = (3%x365)/(97%x60) = 18.8%
As the percentage of customers who take discount is higher than the customer who don't. If McEwan’s tightened its credit the customers who take discount can reduce the receivables.