Answer and Explanation:
a. The preparation of income statement is shown below:-
Income Statement
Service revenue $80,000
operating expenses
Salary expenses $28,000
Uncollectible accounts
expense $3,273
Total operating expense $31,273
Net income $48,727
Working Note :-
Days Amount Percentage Allowance balance
Current $16,800 0.01 $168
0-30 $5,100 0.05 $255
31-60 $4,000 0.10 $400
61-90 $2,000 0.30 $600
Over 90
days $3,700 0.50 $1,850
Total $31,600 $3,273
b. The computation of net realizable value of the accounts receivable is shown below:-
Net realizable value = Accounts receivable - Allowance for doubtful accounts
= ($80,000 - $48,400) - $3,273
= $31,600 - $3,273
= $28,327
Answer:
Both mutual funds and money market funds are similar in the sense that they pool money from several investors in a variety of instruments. The difference is that money market funds pool the money in very liquid, short-term securities, while mutual funds do the same but in less liquid, longer-term securities.
The 63-year-old neighbor should therefore split the money around 60/40, 60% of the funds for mutual funds, in order to have long-term security, and 40% in the money market funds, in order to have quick cash available when needed.
Answer:
$1,720
Explanation:
Total annual premium for both Karen and Mike = $400 + $600 = $1,000
If they insured both cars with the same company, they would save 15% on the annual premiums -> the annual saving = 15% * $1,000 = $150
We use formula FV to calculate the future value of annual payment:
= FV(rate, number of payment, - payment) = FV(3%,10,-150) = $1,720
The difference between the total assets of a firm and its total liabilities is called <u>net worth</u>.
Net worth is the value of all of your property, minus the whole of all your liabilities. Positioned every other manner, it's miles what you personal minus what you owe. If you owe extra than you own, you have got a bad internet worth. if you very own greater than you owe you will have a nice net well worth.
Net worth is the price of all of the non-economic and economic assets owned with the aid of a man or woman or group minus the fee of all its fantastic liabilities. Net actual worth is the cost of all assets, minus the whole of all liabilities. placed any other manner, internet well worth is what's owned minus what is owed.
The meaning of total assets is all of the property or objects of cost, a small commercial enterprise owns. Included in total belongings are coins, bills receivable (cash thanks to you), inventory, devices, equipment, and so on.
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