Answer:
The ending balance of Allowance for Bad Debts account is $800
Explanation:
The computation of the ending balance of allowance for bad debt is shown below:
= Credit sales × uncollectible rate
= $40,000 × 2%
= $800
The estimated amount would be considered as an allowance for bad debts i.e $800, So no other amount would be come while computing the ending balance of Allowance for Bad Debts account.
However, the other information which is given in the question is not relevant. Hence, ignored it
Missing question: Which project should be implemented based on net present value?
Solution:
NPV = -Co + C1/(1+r) + C2/(1+r)^2 + ... + Cn/(1+r)^n
Project A
NPV = -95000 + 65000/(1+0.1) + 75000/(1+0.1)^2 = $26,074.38
Project B
NPV = -120000+ 64000/(1+0.1) + 67000/(1+0.1)^2 + 56000/(1+0.1)^3 + 45000/(1+0.1)^4 = $66,362.95
The rule: The project with higher NPV is chosen for implementation. Based on the NPVs calculated, project B is the most viable.
The vehicle operating cost in the planning budget for December would be closest to $8698
<u>Explanation:</u>
The budgeted vehicle operating costs would be calculated with the help of following formula:
the vehicle operating vost will be added to snow-day that would be ultiplied with the number of planned snow days.
Given data: vehicle operating cost = $2170, snow day cost = $408, number of planned snow days = 16 snow-days.
now, putting the figures in the formula:
$ 2,170 plus $ 408 per day multiply with 16 snow days
after solving we get,
$ 2,170 plus $ 6,528 = $ 8,698.
Answer: Current assets divided by current liabilities
Explanation: Current ratio is a liquidity ratio commonly used by analyst to evaluate the ability of company to pay for its short term liabilities with the given level of short term liquid assets. The difference between current assets and current liabilities is called the working capital.
The ideal current ratio as per the analyst is 1.
Answer: production manager
Explanation: Production manager is that individual in an organisation that is responsible for production process. A production manager is responsible for making the product on time with the appropriate amount of quantity demanded and as per the quality standards fixed.
Thus, if there is a variance due to poor quality of products then a production manager will be the answering authority.
Hence , the right option is A.
