Answer:
Invariably, the cost of the product will rise. A relatively increase in supply parts directly influences the price of a product.
Answer:
27.14 months
Explanation:
to calculate how long it will take to pay the loan, we can use an excel spreadsheet and the NPER function:
=NPER(rate,payment,-loan)
- payment = 630
- rate = 1.03
- loan balance = 14,850
=NPER(1.03%,630,14850) = 27.14 months
Answer:
$174,500.
Explanation:
Budgeted sale in June would made up of the collections:
Month of sale collection
45% × June = 45% × 170,000 = 76500
Month following sale
50% × May sales = 50% × 180,000 = 90000
Second month following sales
= 5% × April sales = 5% × 160,000 = 8000
Budgeted cash collection for June
= 76,500 +90,000 +8,000
= $174,500.
Answer:
a.Company A has a lower return on assets (ROA).
c.Company A has a lower times interest earned (TIE) ratio.
That is options a and c
Explanation:
For company A to have high debt ratio means it has a higher debt which will reduce earnings. Company A's earnings will be less than Company B's.
ROA= Net income/Total assets
Since Company A's income is less than Company B's ROA for Company A will be less than that for Company B.
TIE = Earnings before Interest and Tax/Interest
Due to higher debt of company A it's interest will be higher resulting in low TIE.
Answer:
income summary 550 debit
retained earnings 550 credit
--to close income sumary against RE--
Explanation:
To complete the closing entries we should determinate the balance of the Income Summary account and then, transfer into Retained Earnings.
Income Summary
<u> Debit Credit </u>
2,450
<u> 3,000 </u>
Balance 550
We will debit income summary so his blanace ends in zero and credit retained earnings so net income is accumualted and added into equity to represent it in the balance sheet.
