Answer:
The question is incomplete the answer is $29000
Explanation:
The question only has the first option A. which is $18000. we know that when you are finding the net income it contains of Revenue minus operating expenses but on accrual basis we also include differed and accrued expenses so here we will be identifying each transaction in where it fits.
$42000 tailoring fees are revenue as this is a Tuxedo custom shop;
$14000 are expenses as they stated
Depreciation is an expense of $2000
Accounts receivable is an asset that increases on the debit side therefore it will be added to income for the tuxedo shop in which its value is $1500 and we are told that they increased.
Supplies increased so we will also add them to income at a value of $4000
Accrued liabilities will increase on the credit side therefore will be subtracted on the income received as they are liabilities which amount to $2500. Therefore accrual basis net income = $42000-$14000-$2000+$4000+$1500-$2500
=$29000 which is the accrual basis net income.
Answer:
correct option is b. $200,000
Explanation:
given data
Intercept = 40,000
Slope = 20
machine hours X = 8000
to find out
what is the predicted cost of equipment maintenance for April
solution
we will use here least square equation that will be
Y = intercept + Slope × X ............................1
here Y is cost of maintenance and X is maintenance hours
so put here value we get from equation 1
Y = 40000 + ( 20 ×
8000 )
Y = 40000 + 160000
Y = 200000
so predicted cost of equipment maintenance for April is 200000
correct option is b. $200,000
Answer:
$200 (a deduction)
Explanation:
The accounting standard for inventories IAS 2 requires that inventory be carried at the lower of cost or net realizable value. Inventory will initially be recognized at the cost ( which includes the cost of the item and other associated cost such as freight ). However, its carrying amount must be reviewed to ensure it is not higher than the realizable value.
Given that the selling price is now $15 which is lower than the cost of $16, it means that the amount that can be realized from the sale of a unit is $15.
= $16 - $15
= $1
As such, an adjustment in form of a reduction of the carrying amount of $1 per unit is required. The amount of the lower cost of market adjustment the company must make as a result of this decline in value
= $1 × 200 units
= $200 (a deduction)
Answer: Control activities
Explanation: In simple words, control activities refers to the policies and procedures that help the management to reduce the risk they have identified. These activities reports as a support structure for other operating activities of the business.
In the given case, hexa company has policies and procedures that supports managements initiatives. Hence the given case depicts the control activities element.
Answer:
a.Operating Cycle = Inventory Conversion period + Days Sales Outstanding = 100 + 35 = 135 Days
Cash Conversion Cycle = Inventory Conversion period + Days Sales Outstanding - Days Payables Outstanding
= 100 + 35 - 11 = 124 Days
b.If Carraway were to decide to take full advantage of its credit terms and delay payment until the last possible date , their cash conversion cycle is 100 + 35 - 51 = 84 Days
c.Carraway should take its suppliers offer to finance its inventory with the interest free 35 Day loan
