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3 years ago

Simon Company's year-end balance sheets follow.

Business

1 answer:

Zolol [24]3 years ago

6 0

Answer:

1) current ratio = current assets / current liabilities

current assets include cash + accounts receivable + prepaid expenses + inventory

current liabilities include liabilities and equity amounts payable

current ratio 2015 = ($34,254 + $45,211 + $49,629 + $3,960) / $47,057 = 2.83
current ratio 2016 = ($32,545 + $58,094 + $76,014 + $8,629) / $67,377 = 2.60
current ratio 2017 = ($27,286 + $79,083 + $98,417 + $9,056) / $119,855 = 1.78

2) acid test ratio = (current assets - inventory) / current liabilities

acid test ratio 2015 = ($34,254 + $45,211 + $3,960) / $47,057 = 1.77
acid test ratio 2016 = ($32,545 + $58,094 + $8,629) / $67,377 = 1.47
acid test ratio 2017 = ($27,286 + $79,083 + $9,056) / $119,855 = 0.96

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IBM signs an agreement to lend one of its customers $200,000 to be repaid in one year at 5% interest. IBM would record this loan

Olenka [21]

Answer:

B. Notes Receivable.

Explanation:

Since the company is signed an agreement for lending out of its customers for $200,000 that could be repaid in one year at 5% interest so it is not revenue not note payable and also not account receivable

Therefore it is a note receivable

Hence, the option b is correct

and, the same is to be considered and relevant

4 0

3 years ago

The role of the board of directors in an organization is to:

poizon [28]

Answer:

OPTION A

Explanation:

The primary function of an organization's board of directors is to control the actions of the upper management team to make sure that the interests of shareholders are safeguarded.

PRIMARY FUNCTION OF BOARD OF DIRECTORS

Assess the vision and mission of the company to direct its present activities and potential development and set the agenda.

Review and assess current and future possibilities, threats, and hazards in the internal setting and the company's current & future strengths, weaknesses, and hazards.

4 0

3 years ago

Bond Company uses a plantwide overhead rate with direct labor hours as the allocation base. Use the following information to sol

Georgia [21]

Answer:

B. 6.2 DLH per unit of G2

Explanation:

Total cost per unit of G2:

$20 = DM + DL + OH

$20 = $7 + $3.60 + X

$20= $10.6

$20- $10.6

= $9.4

X = $9.4 overhead per unit of G2

Therefore the Plantwide overhead rate is:

$795,000/530,000 DLH = $1.5 per DLH

DLH per unit of G2:

$9.4/$1.5 = 6.26 DLH per unit of G2

7 0

4 years ago

Royal Gorge Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly fina

Softa [21]

Answer:

1. $31,100

2. $104,000

Explanation:

1. Cost of goods available for sale:

= Cost of beginning inventory + Net purchase + Freight on purchase

= $60,200 + ($127,000 - $7,000) + $4,700

= $184,900

Estimated cost of goods sold:

= Sales - Gross profit

= ($265,000 - $22,000) - [40% × ($265,000 - $22,000)]

= $243,000 - $97,200

= $145,800

Estimated cost of ending inventory:

= Cost of goods available for sale - Estimated cost of goods sold - Inventory stolen

= $184,900 - $145,800 - $8,000

= $31,100

2. Cost of goods sold = Sales × (60/200)

= $243,000 × (60/200)

= $72,900

Estimated cost of ending inventory:

= Cost of goods available for sale - Estimated cost of goods sold - Inventory stolen

= $184,900 - $72,900 - $8,000

= $104,000

4 0

4 years ago

Up in Smoke Tobacco Shops' bond carries a 9 percent coupon, pays interest semiannually, and has 10 years to maturity. What is th

lara [203]

Answer:

10%

Explanation:

Since the bond is selling at a discount, it means that the coupon rate is blow the market rate, so the actual rate must be higher. Since there is only one option with an interest rate above 9%, we must check to see if it works.

10% yearly interest rate = 5% semiannual interest rate

we must determine the PV of the 20 coupons paid and the face value at maturity.

to calculate the PV of the 20 coupons ($45 each) we can use an excel spreadsheet and the NPV function with a 5% discount rate: PV of the coupons = $560.80

the PV of the face value in 10 years = $1,000 / 1.05²⁰ = $376.89

the present value of the coupons and the bond at maturity = $560.80 + $376.89 = $937.69. The PV using a 5% semiannual rate is very similar to $937.75, and since the question asked us to round up to the nearest whole percent, we can assume it is correct.

6 0

3 years ago