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wolverine [178]
3 years ago
15

Scarbrough Corp. factored $600,000 of accounts receivable to Duff Corp. on October 1, year 2. Control was surrendered by Scarbro

ugh. Duff accepted the receivables subject to recourse for nonpayment. Duff assessed a fee of 3% and retains a holdback equal to 5% of the accounts receivable. In addition, Duff charged 15% interest computed on a weighted-average time to maturity of the receivables of fifty-four days. The fair value of the recourse obligation is $9,000. Scarbrough will receive and record cash of:___.
a. $556,685.b. $547,685.c. $538,685.d. $529,685.
Business
1 answer:
Illusion [34]3 years ago
5 0

Answer:

c.$538,685

Explanation:

Calculation to determine what Scarbrough will receive and record cash of

Receivables $600,000

Less: Amount of the hold back ($30,000)

($600,000 x 5%)

Less: Withheld as fee income ($18,000)

($600,000 x 3%)

Less: Withheld as interest expense ($13,315)

($600,000 × 15% × 54/365)

Cash $538,685

Therefore Scarbrough will receive and record cash of: $538,685

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Calculate the inventory turnover for 2019. (Round your answer to 2 decimal places.) Calculate the number of days' sales in inven
rusak2 [61]

Answer:

A.3.63 times

B.95.5 days

C.21.0 times

D.13.5 days

Explanation:

a.

Inventory turnover = Cost of goods sold / Average inventories

Hence:

= $602,250 / $166,000

= 3.63 times

b.

Number of days’ sales in inventory = Inventory at year-end / Average day’s cost of good sold

= $157,575 / $1,650

= 95.5 days

Average day’s cost of goods sold

= Annual cost of good sold / 365

= $602,250 / 365 = $1,650

c.Accounts receivable turnover

= Sales / Average accounts receivable

= $821,250 / $39,100

= 21.0 times

d.

Number of days’ sales in accounts receivable

= Accounts receivable at year-end / Average day’s sales

= $30,400 / $2,250 = 13.5 days

Average day’s sales = Annual sales / 365

= $821,250 / 365

= $2,250

7 0
3 years ago
Mark and rasheed are at the bookstore buying new calculators for the semester. mark is willing to pay $75 and rasheed is willing
Rom4ik [11]

The correct answer is $45

Mark and Rasheed are at the bookstore buying new calculators for the semester. Mark is willing to pay $75 ( <em>$75 - $65 = </em><em>$10</em> ) and  Rasheed is willing to pay $100 ( <em>$100 - $65 = </em><em>$35</em> ) for a graphing calculator. The price for a calculator at the bookstore is $65. Their total consumer surplus ( <em>$10 + $35 = $45</em> )  is $45

5 0
3 years ago
Why is it important to YOU to save money ? ILL MARK BRAINLIST * How and why to save money *
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Explanation:

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When considering total depreciation recorded over the entire life span of an asset, the method resulting in the highest total depreciation is the straight line method, the double declining balance method, and the activity method.

Therefore, option the answer will be that "all three methods result in the same amount of total depreciation". This is because the amount charged for depreciation can not exceed the cost involved and will be identical for the three methods

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Bill thought he had received the best deal on his riding mower. Shortly after the purchase, Bill started to notice certain disad
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