Answer:
The receivables turnover is 71.1 times for Walco,5.0 times for TarMat and 53.7 times CostGet
The average collection period for Walco is 5.1 days,73.0 days for TarMart and 6.8 days for CostGet
Explanation:
The formula for receivables turnover is net credit sales divided average receivables
Walco TarMart CostGet
Receivables turnover
$315,427/($1745+$2692) 71.1
$60,878/($5816+$6344) 5.0
$61,963/($559+$595) 53.7
Average collection period
=365/receivables turnover
365/71.1 5.1 days
365/5.0 73 days
365/53.7 6.8 days
Answer and Explanation:
The journal entry for the recording of sales and sales tax payable is shown below:
Accounts Receivable $3,472
To Sales $3,200
To Sales tax payable $192 ($3,200 × 6%)
To Local tax payable $80 ($3,200 × 2.5%)
(Being the sales and sales tax payable is recorded)
For recording this we debited the account receivable as it increased the asset and credited the sales, sales tax and local tax as it increased the revenue and liabilities
Answer:
a) reserves fall by $1,000, checkable deposits fall by $10,000, and the monetary base remains unchanged
Explanation:
The bank reserves will decrease by the same amount that the client withdrew from the bank, in this case $1,000.
Since the required reserve ratio for checkable deposits is 10%, then the checkable deposits will decrease by 10 times the amount withdrawn from the bank ($1,000 x 10 = $10,000).
The monetary base remains unchanged since the money is still out there in the economy, it only changed from being in the bank to being in the client's pocket.
When competition is present and property rights protected and enforced, market prices will encourage self-interested individuals to develop skills that are expected to be valuable in the future. A system of well-defined, secure private property rights promotes economic performance and progress.