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3 years ago

If you deposited money in a savings account that paid 1% interest, approximately how long would it take your money to double?

1 answer:

6 0

Answer: A
Explanation: The rule of 72 dictates that in order to find the money invested to double you will need to do the following: You would get 72 and divide it by 1 (1 is the percentage in this formula) and the answer would be 72.

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Merchandise costing $2,000 is sold for $3,000 on terms 2/30, n/60. If the customer pays within the discount period, what amount

madam [21]

Answer:

The amount that will be reported on the income statement as net sales is $2,940 and as gross profit is $940.

Explanation:

Given:

Merchandise costing $2,000 is sold for $3,000 on terms 2/30, n/60.

If the customer pays within the discount period.

Now, to find the amount reported on the income statement as net sales and as gross profit.

Cost of merchandise = $2,000.

As, merchandise sold for $3,000.

So, to get the net sales we deduct the discount:

Merchandise on terms 2/30, n/60.

$3,000-2\%\ of\ 3000\\\\=3,000-\frac{2}{100}\times 3000\\\\=3,000-0.02\times 3000\\\\=3,000-60\\\\=\$2,940.$

Thus, the net sales is $2,940.

Now, to get the gross profit we subtract cost of merchandise from net sales:

$\$2,940-\$2,000\\\\=\$940.$

Hence, gross profit is $940.

Therefore, the amount that will be reported on the income statement as net sales is $2,940 and as gross profit is $940.

7 0

3 years ago

If a firm averages $2,000 in daily credit sales and offers 60-day terms, the average accounts receivable balance will be $120,00

Alexeev081 [22]

Answer:

a. True

Explanation:

The computation of the average accounts receivable balance is shown below:

= Daily credit sales × day terms

= $2,000 × 60 days terms

= $120,000

We simply multiplied the average amount with the day term so that the average account receivable balance could come

Hence, the given statement is true

Therefore the correct option is a.

8 0

3 years ago

Mariposa Corporation is considering purchasing equipment for $200,000. Mariposa expects this equipment will last for 20 years an

Westkost [7]

Answer:

$24,220

Explanation:

After tax cashflow formula as follows;

AT cashflow = Income before taxes(1- tax) + annual depreciation amount

Depreciation amount is added back because even though it is an expense deducted to arrive at the income before tax, it is not an actual cash outflow.

Annual depreciation amount = $200,000/ 20 = $10,000

AT cashflow = 18,000*(1-0.21) + 10,000

= 14,220 + 10,000

= 24,220

Therefore, Mariposa’s expected cash flow after taxes per year is $24,220

6 0

3 years ago

Soccer Wholesale purchased land and a warehouse for $990,000. In addition to the purchase price, Soccer Wholesale makes the foll

Elan Coil [88]

Answer:

Cost of land= $1,124,100

Explanation:

According to International accounting standards(IAS) 16 ,The cost of land includes purchase cost plus all other costs necessary to bring and make it ready for the intended use.

These costs include purchase cost, fees and commission associated with the purchase transaction.

Further more, included in the historical cost are the net demolition cost of old structure to prepare the land for use. Net cost here means cost of demolition less any incidental proceed from the old structure.

However, remember that land is not depreciated because it has an infinite life span.

So using the historical cost principle the cost of the land

Cost of land = 990,000 + 49,600 +2300 + 6, 900 + 75,300= 1,124,100.00

Cost of land= $1,124,100

6 0

3 years ago

The difference between supply and quantity supplied is that "supply" refers to the ___________ and "quantity supplied" refers to

yanalaym [24]

Answer:

a. curve; point on the curve

Explanation:

Supply refers to the supply curve. Changes in supply leads to movement of the supply curve either to the left or to the right.

Factors that cause change in supply:

A. Cost of production

B. Weather

C. Taxes

D. Number of suppliers

Quantity supplied is a point on th curve with reference to price. Changes in quantity supplied is represented by movement either up or down the supply curve. Changes in quantity supplied is caused only by changes in price.

I hope my answer helps you

4 0

3 years ago