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3 years ago

What is the impact on the accounting equation when an accounts receivable is collected?

1 answer:

5 0

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Answer for your question!

Because one asset increases and another decreases by the same amount, the accounting equation remains unchanged and in balance, suggests Principles of Accounting. For example, if you collect $100 from an account receivable, cash increases by $100 and accounts receivable decreases by $100.

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Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of $23,490 and variable exp

Mars2501 [29]

Answer:

Contribution margin ratio = Contribution margin / Sales

Product C90B CMR = ($23,490 - $7,047) / $23,490 = $16,443 / $23,490 = 0.7 = 70%

Product Y45E CMR = ($34,800 - $13,920) / $34,800 = $20,880 / $34,800 = 0.6 = 60%

The rule, <em>the Higher the contribution margin ratio, the lower the Break-Even point. </em>So, if sales mix shifts to product C90B, overall Break-even point <u>Decreases</u>.

8 0

3 years ago

Ganado and Equity Risk Premiums. Maria Gonzalez, Ganado's Chief Financial Officer, estimates the risk-free rate to be 3.50 %

Elza [17]

Answer:

WACC (CAPM) 5.2%

WACC (ICAPM) 5.03%

Explanation:

The weighted average cost of capital is

Ke * E/ E+D + Kd * (1 -t) D / E+D

Ke = Rf + (Rm - Rf) * $\beta$

Ke (CAPM) = 3.50% + (8% - 3.50%) * 1.12

Ke (CAPM) = 7.532%

Kd (CAPM) = Kd (1-t)

Kd (CAPM) = 7.60 (1-39%)

Kd (CAPM) = 4.636%

WACC (ICAPM) : 7.532 * 20% + 4.636 * 80%

WACC (CAPM) = 5.2164%

Ke (ICAPM) = 3.50% + (8% - 3.50%) * 0.86

Ke (ICAPM) = 6.596%

Kd (ICAPM) = Kd (1-t)

Kd (ICAPM) = 7.60 (1-39%)

Kd (ICAPM) = 4.636%

WACC (ICAPM) : 6.596 * 20% + 4.636 * 80%

WACC (CAPM) = 5.03%

7 0

4 years ago

Suppose you own a restaurant were does the revenue come from

son4ous [18]

Revenue per hour of labor

8 0

4 years ago

Company acquired a new truck at at cost of $52,000 on January 1, 2019. The truck is expected to be used for 4 years and have a s

AfilCa [17]

Answer and Explanation:

The computation is shown below:

= (Original cost - residual value) ÷ (useful life)

= ($52,000 - $8,000) ÷ (4 years)

= ($44000) ÷ (4 years)

= $11,000

In this method, the depreciation is same for all the remaining useful life

a. The depreciation expense for 2019 is $11,000

b. The depreciation expense for 2020 is $11,000

c. The accumulated depreciation for year 2019 is $11,000

d. The accumulated depreciation for year 2020 is $22,000 ($11,000 + $11,000)

e. The book value is

= Original cost - accumulated depreciation

= $52,000 - $22,000

= $30,000

3 0

3 years ago

Larson entered Forrester's Auto Mart to purchase a used car. Larson found a vehicle with a sales price of $11,000. After Forrest

RideAnS [48]

Answer:

The answer is: C) lose because he will not be able to prove reliance on the misrepresentation.

Explanation:

In order for Larson to be able to rescind the contract, he would have to prove that he had reasonable reliance that Robert Redford owned that specific car. Reasonable reliance refers to a person believing something to be a fact, which any other person could reasonably believe in as well.

But exactly how could he prove that someone else might also believe that the car was previously owned by Robert Redford? I find it very doubtful that he can prove that.

5 0

3 years ago