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andrey2020 [161]
2 years ago
6

In the month of March the Digby Corporation received and delivered orders of 173,000 units at a price of $15.00 for revenue of $

2.595mil for their product Drat. Digby uses the accrual method of accounting and offers 30 day credit terms. By the end of May Digby had collected payments of $2.595mil for the March deliveries. How much of the collected $2.595mil should Digby show on the March 31st income statement and how much on the May 31st income statement
Business
1 answer:
podryga [215]2 years ago
8 0

Answer: $2.595mil in March and $0 in May.

Explanation:

Digby Corporation uses the Accrual Method of Accounting. This method of Accounting posits that entries should be recorded only in the period that they were incurred regardless of when payment was received or made.

This means that if Revenue is received in a certain month but only paid for in another month,the accounting records will show the entire revenue amount on the original month.

In reference to Digby, they earned a revenue of $2.595 million in March and that is the amount that they will record as Revenue in March using Accrual Accounting.

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Seattle Inc. identifies an investment opportunity, which will yield cash flows of $30,000 per year in Years 1 through 4, $35,000
vladimir2022 [97]

Answer:

the payback period = 4.86 years

Explanation:

Seattle's cash flows are as following:

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0                     -$150,000                                -$150,000

1                         $30,000                                -$120,000

2                        $30,000                                 -$90,000

3                        $30,000                                 -$60,000

4                        $30,000                                 -$30,000

5                        $35,000                                    $5,000

6                        $35,000                                  $40,000

etc.

The payback period is between year 4 and 5:

  • 4 years + ($30,000 / $35,000) = 4.86 years or
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6 0
2 years ago
Shelli's Ski Super has sales of $670, net fixed assets of $210, total assets of $305, and current assets of $25. What is the tot
Troyanec [42]

Answer:

2.20

Explanation:

The formula to compute the total assets turnover ratio is shown below:

Total asset turnover = (Sales revenue ÷ Total assets)

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We simply divide the sales revenue by the total assets, so that the total asset turnover ratio can be computed

All other information which is given is not relevant. Hence, ignored it

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person who does not lock the doors or does not repair leaks shows an indifferent attitude. This person presents what type of haz
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A person who doesn't lock doors or fix leaks presents morale hazard.

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Therefore, morale hazard is the change in behavior that comes from the subconscious, generating indifference about the loss of goods because they are covered by insurance.

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Mike just looked at his spending from last month and discovered he spent $120 buying movies. Mike knows that $120 is a lot of mo
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Answer:

B

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2 years ago
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As students finds high paying job, they are now able to buy more expensive pizza, which means that a number of customers for cheap pizza will be decreased

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