<span>With a Net 30 payment policy, but an average collection period of 75 days with customers, Hanson's furniture store, should either reduce their store credit option, and encourage approximately 45% of their store credit customers to pay upon receipt, or shorten their operating cycle.</span>
Answer:
$320,000
Explanation:
Since the season starts in January and lasts until June, by April 30 the balance of the deferred revenue (or unearned revenue account) would be = $960,000 - {($960,000 / 6) x 4} = $960,000 - $640,000 = $320,000
The journal entries should be:
Accumulated tickets until December 31
Dr Cash 960,000
Cr Deferred (Unearned) revenue 960,000
By April 30th, the adjusting entry should be:
Dr Deferred (Unearned) revenue 640,000
Cr Ticket revenue 640,000
Answer:
$7,738,000
Explanation:
The computation of total stockholders' equity is shown below:-
= $3,410,000 + $560,000 + $2,090,000 + $388,000 + $1,440,000 - $150,000
= $7,888,000 - $150,000
= $7,738,000
Therefore for computing the total stockholders' equity we simply add all values except treasury stock and deduct the treasury stock.
Answer:
E) None of the above
Explanation:
Calculation to determine What is your profit from implementing this strategy
Profit={[($10,000/$1.62)*$2.95]*$.55}-$10,000
Profit =[( £6,172.84 *2.95) *$.55]-$10,000
Profit=( NZ$18,209.88 x $.55)-$10,000
Profit = $10,015.43-$10,000
Profit=$15.43
Therefore your profit from implementing this strategy is $15.43
