1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
olchik [2.2K]
3 years ago
8

During 2018, Hardy Merchandising Company purchased $19,000 of inventory on account. Hardy sold inventory on account that cost $1

4,300 for $21,400. Cash payments on accounts payable were $11,900. There was $19,000 cash collected from accounts receivable. Hardy also paid $3,900 cash for operating expenses. Assume that Hardy started the accounting period with $22,500 in both cash and common stock.
Required:

a. Record the events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. What is the balance of accounts receivable at the end of 2018?
b. What is the balance of accounts payable at the end of 2016?
c. What are the amounts of gross margin and net income for 2016?
d. Determine the amount of net cash flow from operating activities. (Indicate cash outflows with minus sign.)

Business
1 answer:
choli [55]3 years ago
3 0

Answer:

a-

[Find solution in the attachment]

a- 2)

Balance of accounts receivable at the end of 2018 = $2,400

Solution b:

Balance of accounts payable at the end of 2018 = $7,100

Solution c:

Gross margin = Sales - COGS = $21,400 - $14,300 = $7,100

Net Income = Gross margin - Operating expenses = $7,100 - $3,900 = $3,200

Solution d:

Cash flow from operating activities = Cash received from customer - Cash paid for accounts payable - Cash paid for operating expenses = $19,000 - $11,900 - $3,900 = $3,200

You might be interested in
A high degree of _______ means you can accurately assess your own strengths and limitations and have a healthy sense of self-con
Alex_Xolod [135]
I think the correct answer would be <span>self-awareness. If you really know yourself well, you can easily tell if something is out of your limits or boundary. You can easily pinpoint which one is right or bad for you. Hope this answers the question.</span>
4 0
2 years ago
Suppose Piranha.com sells 3,500 books on account for $17 each (cost of these books is $35,700) on October 10, 2018 to The Textbo
nadezda [96]

Answer:

The journal entries are as follows:

(1) (i) On October 10, 2018

Merchandise inventory A/c (3,500 × $17) Dr. $59,500

        To Accounts payable (Piranha)                             $59,500

(To record the purchase of books)

(ii) On October 13, 2018

Accounts payable A/c (100 × $17) Dr. $1,700

        To merchandise inventory                     $1,700

(To record the purchase return of book)

(2) (i) On October 10, 2018

Accounts receivable A/c Dr. $59,500

         To sales

(To record the sales of book)

Cost of goods sold A/c Dr. $35,700

            To merchandise inventory    $35,700

(To record the cost of goods sold of book)

(ii) On October 13, 2018

Sales return and allowances A/c Dr. $1,700

              To accounts receivable                  $1,700

(To record the sales return of book)

Merchandise inventory A/c Dr. $1,020

           To cost of goods sold               $1,020

(To record the cost of good return)

5 0
3 years ago
Dan owns an autographed copy of a brittany spears cd that he values at $100. if he sells the cd at the garage sale he's planning
Delvig [45]

The complete question is as follows:

Dan owns an autographed copy of a Brittany Spears CD that he values at $100. If he sells the CD at the garage sale he’s planning to hold in a few weeks, it will be sold to a buyer with a reservation price of $175. If he sells it on eBay, it will be sold to a buyer with a reservation price of $500. eBay will charge Dan $50 to auction the CD, which just covers eBay’s opportunity cost of running the auction. Relative to selling the CD at his garage sale, auctioning the CD on eBay will lead:

A. to no change in total economic surplus.

B. total economic surplus to increase by $500.

C. total economic surplus to increase by $275.

D. total economic surplus to increase by $100.

Answer: C - Total economic surplus to increase by $275.

In this question, we only need to consider producers' surplus since we're considering the various options for Dan to sell his CD.

We calculate Producer's Surplus as follows:

Producer's surplus = Market Selling Price - Economic Cost.

Economic costs not only refers to explicit costs like cost of the CD, but also includes opportunity costs. Since we need to calculate producer's surplus when Dan sells on Ebay, we need to consider the following costs:

Value of the CD = $100

Ebay's opportunity cost that Dan will have to bear = $50

Profit Dan would've received in garage sale = $75 ($175 - $100)

Among the three expenses listed above, the profit Dan would've got in the garage sale is considered the <u>implicit cost or opportunity cost.</u>

Substituting the values we have in the equation above, we get,

Producer's Surplus = 500 - (100+50+75)

Producer's Surplus = 275

8 0
3 years ago
The loan-to-value ratio is 80%. a buyer wants to acquire a property with a purchase price of $116,000. calculate the required do
blondinia [14]
116,000 divided by 80% is $145,000
6 0
3 years ago
This jacket is so thin. It can't possibly keep out the rain."(Use the boomerang method.)
Ivan

Answer:

The jacket is thin because it uses a fiber called thinsulate that enables it to have the lightest weight but is also the warmest.

Explanation:

In general marketing, the boomerang method refers to the 'reconstruction' of the customer's objection into the main reason for buying. In other words, using the same excuse that a customer has about a product to entice him/her to buy that product by reframing it as a selling point is known as the boomerang method.

In the given scenario, the customer's objection is about the thinness of the jacket can be used as a selling point by the salesman by stating that the lightness of the jacket is what makes it a good product. So, if the seller tells the customer <em>"the jacket is thin because it uses a fiber called Thinsulate that makes it thin but also warm"</em>, then that will make it an interesting and important factor for the customer to like the product more.

6 0
2 years ago
Other questions:
  • A Six sigma (6s) approach to quality focuses on preventing defects by using customer feedback to reduce variation and waste. Gro
    7·1 answer
  • Self doubt is a result of ______. a. Having great success b. Lacking self-esteem c. Successful conflict resolution d. An asserti
    8·2 answers
  • Suppose that productivity growth in an economy over a two-year period has fallen to less than 2% per year, causing a severe rece
    9·1 answer
  • After developing a computer locking system, Caffrey Computer Corp. worked out a licensing deal with Chicago Desktop (a potential
    8·1 answer
  • 1. Explain the meaning of Newton's Law of<br>Gravitation.​
    15·1 answer
  • The following information describes a company's usage of direct labor in a recent period. The direct labor efficiency variance i
    11·1 answer
  • Which of the following is consistent with the law of​ demand?
    6·1 answer
  • (-2a+5)(3a+4)<br><img src="https://tex.z-dn.net/?f=%28%20-%202a%20%2B%205%29%283a%20%2B%204%29" id="TexFormula1" title="( - 2a +
    15·1 answer
  • An agent's client calls on Monday to discuss the current market situation. They discuss how 100 shares of KAPCO common stock wou
    9·1 answer
  • you just saw a video advertisement that shows an interview with a celebrity who says her life changed for the better when she st
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!