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3 years ago

How would a sale of $400 of inventory on credit affect the balance sheet if the cost of the inventory sold was $160

Business

1 answer:

dimaraw [331]3 years ago

5 0

Answer:

the journal entries used to record this transaction are:

Dr Accounts receivable 400

Cr Sales revenue 400

Dr Cost of goods sold 160

Cr Inventory 160

This transaction will increase net income, which increases retained earnings by $240. It will also increase assets by $240, since accounts receivable increases by $400, but inventory decreases by $160.

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Contribution Margin Ratio, Variable Cost Ratio, Break-Even Sales Revenue The controller of Ashton Company prepared the following

iren [92.7K]

Answer:

1. 73 %

2. 27 %

3. $60,000

4. Ways to increase projected operating income without increasing total sales revenue :

Reduce the variable costs per unit
Reduce fixed overheads

Explanation:

Contribution Margin Ratio = Contribution / Sales × 100

Where,

Contribution = Sales - Variable Costs

= $88,000 - $23,760

= $64,240

Then,

Contribution Margin Ratio = $64,240/ $88,000 × 100

= 73 %

Variable Cost Ratio = Variable Cost / Sales × 100

= $23,760 / $88,000 × 100

= 27 %

Break-even sales revenue = Fixed Costs ÷ Contribution Margin Ratio

= $43,800 ÷ 0.73

= $60,000

Ways to increase projected operating income without increasing total sales revenue :

Reduce the variable costs per unit
Reduce fixed overheads

7 0

2 years ago

(Will mark BRAINLIEST) Can someone explain what exactly this question is asking?:

Mekhanik [1.2K]

The question asks to describes any two methods of searching a job when you actually need for a new job. Also to search jobs you can prefer,

Use Online Job Portal,

Use Employee Referral Programs, etc...

Explanation:

Before you start chasing for a new position you've set aside some effort to clean your resume, take a stab at scanning for openings online by visiting the "Professions" page on different organizations' website pages, perusing different quest for new employment destinations, or experiencing the activity board facilitated by your college. Online occupation sites are regularly called work banks.

They are a decent method to secure current position declarations that meet your criteria. Secure position advertisements on the web, in work banks, on organization sites, at work fairs, and the sky is the limit from there. At that point follow the tips to react to those openings. Address bosses to extend your system and find out about conceivable employment opportunities.

7 0

3 years ago

Exercise 11-1 (Algo) Depreciation methods [LO11-2] [The following information applies to the questions displayed below.] On Janu

Dvinal [7]

Answer:

Straight line depreciation expense each year of the useful life would be $9,600

The double declining method

Deprecation expense in December 2021 = $20,800

Depreciation expense in 2022 = $12,480

Depreciation expense in 2023= $7488

Depreciation expense in 2024 = $4,492.80

Deprecation expense in 2025 = $2695.68

Explanation:

Straight line depreciation method = (Cost of asset - Salvage value) / useful life

Cost of asset = $52,000

Salvage value = $4,000

Useful life = 5

($52,000 - $4,000) / 5 = $9,600

The straight line depreciation method allocates the same deprecation expense for each year of the useful life of the asset.

So the deprecation expense each year would be $9,600.

Double declining depreciation method = Depreciation factor x cost of the asset

Depreciation factor = 2 x (1/useful life)

2 × (1/5) = 0.4

Deprecation expense in December 2021 = 0.4 x $52,000 = $20,800

Net book value = $31,200

Depreciation expense in 2022 = 0.4 x $31,200 = $12,480

Net book value = $31,200 - $12,480 = $18,720

Depreciation expense in 2023 = 0.4 x $18,720 = $7488

Net book value = $18,720 - $7488 =$11,232

Depreciation expense in 2024 = 0.4 x $11,232 = $4,492.80

Net book value = $11,232 - $4,492.80 = $6,739. 20

Deprecation expense in 2025 = 0.4 × $6,739. 20 = $2695.68

I hope my answer helps you

3 0

3 years ago

Carlisle Company has been cited and must invest in equipment to reduce stack emissions or face EPA fines of $18,500 per year. An

Ahat [919]

Answer:

equivalent annual cost: 19,784.81

The investment is not economically justified as it is cheaper to pay the fines than invest in the equipment to avoid them.

Explanation:

We calcualte the PMT of a 75,000 dollars equipment at 10%

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

PV 75,000

time 5

rate 0.1

$75000 \div \frac{1-(1+0.1)^{-5} }{0.1} = C\\$

C $ 19,784.811

EPA fines: $ 18,500.00

differential: (1, 284.81)

3 0

3 years ago

Kathleen is considering expanding her dress shop. If interest rates rise she is Group of answer choices less likely to expand. T

Karolina [17]

Answer:

Less likely to expand.

Explanation:

When ever interest rates rise in an economy, the soul purpose of that is to control inflation by influencing the people to save more and consume/spend less.

Hence, when the interest rates will rise, Kathleen will be moving away from the expansion process as she will have to borrow the money at more cost than before, hence increasing the risk of return from the expansion process. Hence this will lead to the demand for loan-able funds to slope downwards.

Hope this helps you. Good Luck.

7 0

3 years ago