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Nadya [2.5K]
3 years ago
11

Festi Corp. is evaluating if revenue may be recognized for two of their contracts. The customer in Contract A has indicated that

they are ready to accept the transfer of the products associated with the contract, but delivery has not yet occurred. The customer in Contract B has received legal title to the products, but has asked Festi to store the products for them until they open the new stores for which the product has been ordered. Festi has clearly labeled and set aside the products in the warehouse for the customer in Contract B, but delivery has not yet occurred.Should revenue be recognized for:Contract A Contract Ba Yes Nob No Yesc No Nod Yes Yes
Business
1 answer:
Tamiku [17]3 years ago
3 0

Answer:

B. No, Yes

Explanation:

There are no indicators that the customer in Contract A has obtained control of the products; therefore, revenue should not yet be recognized for Contract A. The customer in Contract B has received legal title to the product, thus, the significant risks and rewards of ownership have transferred to the customer in Contract B. Contract B appears to be a bill-and-hold sale because the customer is not able to take delivery until their new stores are ready to receive the inventory and Festi has clearly set aside the product associated with Contract B.

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Suppose that you have found the optimal risky combination using all risky assets available in the economy, and that this optimal
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A contract between businesses in two different countries falls under Blank______ international law, while disputes between two c
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2 years ago
Income Statement (in Millions of Dollars) Net sales $100.0 Cost of sales 60.0 Selling, general, and administrative expenses 20.0
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Answer:

the balance sheet is missing:

Balance Sheet  (In millions of Dollars)

ASSETS

Cash                                     $6.0

Accounts Receivable              14.0

Average Inventory                   12.0

Fixed Assets, net                  40.0

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Accounts Payable                $10.0

Salaries and Benefits Payable   2.0

Other current Liabilities            10.0

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Equity                                     38.0

TOTAL LIABILITIES AND EQUITY                     $72.0

a. Determine the length of the inventory conversion period.

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b. Determine the length of the receivables conversion period.

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c. Determine the length of the operating cycle.

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e. Determine the length of the cash conversion cycle.

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f. What is the meaning of the number you calculated in Part e?

  • How long does it take to turn inventories into cash, it is a measure of asset liquidity.
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