Answer: See explanation
Explanation:
a. If Barans Company pays the invoice within the discount period, what is the amount of cash required for the payment?
The amount of cash required for the payment will be:
Purchases: = $12,900
Less: Returns = $2500
Less: Discount = ($12900 - $2500) × 1% = ($10400 × 1%) = $104
Cash required for payment = $10296
b. What account is credited by Barans Company to record the return?
Based on the information above, the merchandise inventory will be credited.
Answer:
Personal liability
Explanation:
Jeri and Knute are shareholders in lighthouse tours LLC. As lighthouse tours LLC is a limited liability company, Jeri and Knute enjoy limited liability.
Legally, lighthouses LLC is independent of its shareholders. It has the right to own assets and incur liabilities. Should the company get to the dissolution stage, its assets will be used to settle its obligations. If the assets of the company are not sufficient, the shareholders' private properties cannot be used to pay the debts. Jeri and Knute will be liable only to the extent of capital contribution.
Answer:
Payback period = 3 years
Explanation:
<em>The payback period is the average length of time it takes the cash inflow from a project to recoup the cash outflow.</em>
<em>Where a project is expected to generate a series of equal annual net cash inflow, the payback period can be calculated as: </em>
<em>Payback period =The initial invest /Net cash inflow per year
</em>
The cash inflow = Net operating income + Depreciation
= 105, 000 + 45,000 = 150,000
Note we have to add back depreciation because it is not a cash-based expenses. And payback period makes use of only cash-based revenue and expenses.
Payback period = 450,000/150,000
= 3 years
Payback period = 3 years
I just bought shelves and I use it to store all my nail supplies
