Answer:
45.62 days
Explanation:
For computing the average number of days receivables, first, we have to calculate the account receivable ratio. The formula is shown below:
Account receivable ratio = Net credit sales ÷ Average accounts receivable
where,
Average account receivable = (Beginning account receivable balance + ending account receivable balance) ÷ 2
Now put these values to the above formula
So, the answer would be equal to
= $480,000 ÷ ($40,000 + $80,000 ÷ 2)
= $480,000 ÷ $60,000
= 8 times
Now, the average level of receivables equals to
= Total number of days in a year ÷ Account receivable ratio
= 365 days ÷ 8
= 45.62 days
Answer:
Option "B" is the correct answer to the following statement.
Explanation:
The price elasticity of demand determines the flexibility of the volume needed to adjust the price.
The demand of an individual or market becomes inelastic if it will not adjust much to increasing prices, and it is elastic for an individual or market if the demand of a particular commodity will shift a lot as prices shift.
Answer:
$1905
Explanation:
Here we will have to calculate Economic Order Quantity to lower the ordering ordering and holding cost as much as we can. So here we will use the following formula to calculate the best number of units that we should order, which is as under:
Economic Order Quantity = SquareRoot (2 * Annual Demand * ordering cost per order / Holding cost per unit per year)
Here
Annual Demand = 900kg of palm oil per day * 52 weeks * 5 day a week / 7
Annual Demand = 900 * 52 * 5 / 7 = 33,429
And
Ordering cost per order = $57 per order
Annual holding cost per unit per year is 20% of $5.25 per kg which is $1.05.
So by putting values, we have:
Economic Order Quantity = Square Root (2 * 33,429 * 57 / 1.05)
Economic Order Quantity = 1905 kgs
Answer:
D- Terminated
Explanation
The original offer is terminated and a new offer is formed.
Answer:
c. $ 95,000 $ 0
Explanation:
<u>Calculation of cost of land acquired</u>
For the purpose of recording of land acquired in the books of accounts, the accounting values of consideration paid shall be considered as per the generally accepted accounting principles as well as as per International accounting standard (IAS) - 16 'Property, plant and equipment'. Hence the land shall be recorded as per the following amounts:
Consideration paid in cash (A) = $ 5,000
Consideration in kind (land) (B) = $ 90,000 (Refer Note 1)
Total cost of new land (A+B) = $ 95,000
<em>Note 1</em>
Fair value is irrelevant for the purpose of capitalization of asset (IAS-16)
<u>Calculation of Gain/loss on disposal of land</u>
No gain/loss needs to be recorded as the new asset shall be recorded in terms of the book value of old asset (i.e. net impact is already taken into account during the exchange transaction)
