Interest rates on a loan provide what key information?

Aggie Fitness began business in College Station, TX on June 1, 2018. At that time, the company collected $6,000 in advance payme

REY [17]

Answer:

b. $2,500, $3,500

Explanation:

Amount collected in advance will be recognized as a liability until the revenue is earned. Entries are posted between the cash account and deferred revenue account on collection of cash.

Given that he company collected $6,000 in advance payments from customers for 12-month gym memberships on June 1, 2018.

Debit Cash account $6,000

Credit Unearned revenue $6,000

After 7 months ( between 1 June and 31 December 2018),

Revenue earned = 7/12 × $6,000 = $3,500

On December 31, 2018,

Debit Unearned revenue $3,500

Credit Membership Revenue $3,500

Balance in unearned revenue accounts = $6,000 - $3,500 = $2,500

Balance in Membership revenue = $3,500

3 0

3 years ago

What are the practical consequences of a lack of strategic linkage between the business and the operations function? give exampl

Ivenika [448]

The practical consequences that result of lack strategic linkage between business and operations functions are it will know the organization if it is a success or a failure. The lack of linkage can also cause people trap and busy with all kinds of activities. For example, in the company, you work as a team and you have the quota but the people inside the team didn’t get the proper linkage so the team will fail the task that given to them because of lack of strategic linkage.

8 0

3 years ago

The president believes that a $6,200 increase in the monthly advertising budget, combined with an intensified effort by the sale

nirvana33 [79]

<u>Solution and Explanation:</u>

calculating the increase in the net operating income is as follows:

S.no Particulars and explanation Amount

1. Sales ( $268000 + 84000 ) 352000

2. Contribution ( 1 multiply with 40 percent) 140000

3. Fied expense ( $119200 plus $6200 ) 125400

4. Net operating income ( 2 step minus 3 step) $14600

therefore, net operating income increased by $ 14600 plus $12000

Note: the sales were not given, so i have taken or assumed. Please change the figure if there is different figure of sales in the question given.

3 0

3 years ago

An investment has the following cash flows and a required return of 13 percent. Based on IRR, should this project be accepted? W

Ganezh [65]

Answer:

B. No; The IRR is less than the required return by about 1.53 percent

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

The IRR can be calculated using a financial calculator:

Cash flow in year zero = -$42,000

Cash flow in year one = 15,300

Cash flow in year two = 28,400

Cash flow in year three = 7,500

IRR = 11.47%

A project should be chosen if the IRR is greater than the required return

The IRR is less than the required return so the project should be rejected.

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

I hope my answer helps you

6 0

3 years ago

The ________ method adjusts net income to find net cash provided by operating activities.

Vaselesa [24]

Answer:

indirect

Explanation:

The indirect method adjusts net income to find net cash provided by operating activities.

4 0

2 years ago