1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Gelneren [198K]
3 years ago
13

Jarrett Baker is the founder of an enterprise software company located in Chevy Chase, Maryland. By looking at the income statem

ents for Jarrett’s business over the past 3 years, you see that its working capital has declined from $42,400 in 2012 to $17,900 in 2013 to $3,100 in 2014. If this trend continues, in what ways could it jeopardize the future of Jarrett’s business?
Business
1 answer:
Westkost [7]3 years ago
3 0

Answer and Explanation:

In this particular case, the working capital continues to fall and hits a value below zero otherwise the business would have a negative cash flow.

Company's assets are below its liabilities which including its current working capital would not be able to manage its debts. The Company would be faced with extreme difficulty in paying back its creditors.

If, as in the case at hand , the company continues to operate in low working capital and work capital declines over time, the company can encounter extremely serious financial problems.

Following Effects may include declining revenue from purchases, non-inventory management, or issues with the specific total accounts receivable.

You might be interested in
On January 1, 2009, Coronado Industries purchased for $690000, equipment having a useful life of ten years and an estimated salv
JulijaS [17]

Answer:

There is not gain in this operation so the answer is $0

Explanation:

There are some journal entries that needs to be done to have a full picture of the statement

* Purchase

Fixed Assets                        690.000

Cash                                                        690.000

* Monthly depreciation

Since, the FA was depreciated during 8 years. Firstly you have to calculate the amount that can be depreciate on a monthly basis

Amount to be depreciated = (Cost of the FA - Salvage value) = (690.000-48.600) = 641.400

Then calculate the yearly depreciation

Yearly depreciation = ((amount to be depreciated/useful life) * years used) =

(641.400/10*8) = 513.120

then the journal entry to record the monthly depreciation for 8 years is

Depreciation expense          513.120

Acc Depreciation                                   513.120

* Post the Journal Entry to record the sell of FA

You have to reverse the Acc Depreciation and credit the FA

Cash                                     152.500

Fixed assets                                         690.000

Acc depreciation                   513.120

Loss on sale of FA                   24.380

6 0
3 years ago
ABC began a defined benefit pension plan for its employees on Jan 1, 2018. The following data are provided for 2018 as of Dec 31
SVETLANKA909090 [29]

Answer: $187 ⇒ Amount should ABC report as a net pension liability (asset) at Dec 31, 2018

Explanation:

Given that,

Data for 2018 as of Dec 31, 2018 are as follows:

Projected benefit obligation = $634

Accumulated benefit obligation = $418.44

Plan assets at fair value = $821

Pension expense = $192.48

Employer's cash contribution (end of year) = $361

The amount should company report as a net pension liability at Dec 31, 2018 as follows:

Net Pension Liability =  Projected benefit obligation - Plan assets at fair value

= $634 - $821

= $187 ⇒ Amount should ABC report as a net pension liability (asset) at Dec 31, 2018

6 0
3 years ago
What is the factor affect the net export of a country
Tamiku [17]

The factor that affect the net export of a country include:

  • domestic and foreign incomes
  • relative price levels
  • exchange rates
  • foreign trade policies etc

<h3>What is a net export?</h3>

This refers to the the difference between the monetary value of a nation's exports and imports over a certain time period.

In conclusion, the net export is derived after the deduction of the total import from the total export in a year.

Read more about net export

<em>brainly.com/question/21205765</em>

#SPJ1

3 0
2 years ago
The Chilton Corporation specializes in manufacturing one type of desk lamp. Chilton allocates variable manufacturing overhead co
docker41 [41]

Answer:

Variable manufacturing overhead rate variance = 80,000 favorable

Explanation:

Given:

Overhead rate variance = $1.70 per hour

Total machine hour = 160,000 hour

Actual overhead costs = $192,000

Find:

Variable manufacturing overhead rate variance

Computation:

Variable manufacturing overhead rate variance = [Standard overhead rate - Actual overhead rate]Actual hour

Variable manufacturing overhead rate variance =[1.7 - (192,000 / 160,000)]160,000

Variable manufacturing overhead rate variance = [1.7 - (1.2)]160,000

Variable manufacturing overhead rate variance = [0.5]160,000

Variable manufacturing overhead rate variance = 80,000 favorable

6 0
3 years ago
Toussaint Company issued 10,000 shares of its common stock in exchange for merchandise that it will resell. The merchandise had
Aleks [24]

Answer:

The correct answer is $300,000.

Explanation:

According to the scenario, the computation of the given data are as follows:

Original cost = $250,000

Fair value = $300,000

Retail value = $520,000

As Share based transaction of the organization record or issued always at fair value for which the goods or services are exchanged.

Here, Fair value is given.

So, the transaction will be recorded at fair value = $300,000

7 0
3 years ago
Other questions:
  • Marco Nelson opened a frame shop and completed these transactions: Marco started the shop by investing $40,200 cash and equipmen
    12·1 answer
  • Fern Corporation manufacturers a single product that has a selling price of $25.00 per unit. Fixed expenses total $50,000 per ye
    8·1 answer
  • There are advantages to doing business with just one vendor, and you should always stick to just one if you can
    15·1 answer
  • Externalities affect the economic efficiency of a market equilibrium by causing a difference between:________
    11·1 answer
  • The spouse of a brokerage firm employee wants to open a brokerage account so that he can trade individual stocks. If the account
    10·1 answer
  • If a monopolist produces 100 units of output at a market price of $5 per unit with marginal revenue per unit equaling $4, we wou
    12·1 answer
  • In the value chain, what is the term of the activities that are required but not directly add value to the company's products or
    9·1 answer
  • Last month when Holiday Creations, Inc., sold 44,000 units, total sales were $308,000, total variable expenses were $215,600, an
    6·1 answer
  • Sheffield Corp. developed the following data for the current year: Beginning work in process inventory $ 216000 Direct materials
    14·1 answer
  • A brief description of the contract and the parties involved
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!