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egoroff_w [7]
2 years ago
5

A company purchased $2,300 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $450 worth of merchandise. On

July 12, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 12 is:
Business
1 answer:
Aleksandr [31]2 years ago
7 0

Answer:

Dr Accounts payable 1850

Cr Merchandise inventory $37

Cr Cash $1813

Explanation:

Preparation of the journal entry to record the payment on July 12 Using the gross method,

JOURNAL ENTRY

Jul-12

Dr Accounts payable ($2300-450) 1850

Cr Merchandise inventory ($1850*2%) $37

Cr Cash $1813

($1850-$37)

(Being entry recorded for payment to supplier)

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Divine plc is a pure-honey producing plant. The firm wants to replace its aging processing machine. One option is to purchase a
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Answer:

Project A

Years      Cashflows     Discount factor     Present values

0            250,000                    1                           -250,000

1-10            45,100                   6.144                     277,094.40

Sum of all present value=NPV=27,094.40

IRR (by using trial and error method) = 12.4696%

Note: Discount factor for the year 1-10 is calculated by using annuity formula i.e [1-(1+10%)]/10% = 6.144

Project B

Years Cashflows Discount factor  Present values

0        (350,000)           1                              (350,000)

1           72,500               0.91                   65,975  

2           65,500               0.83                    54,365  

3           73,800                  0.75                    55,350  

4            71,500                  0.68                    48,620  

5           69,800                  0.62                   43,276  

6           75,500             0.56                   42,280  

7           31,000                  0.51                            15,810  

8           47,500                  0.47                           22,325  

9           55,500                  0.42                   23,310  

10           29,200                  0.38                    11,096

Sum of all present values=NPV=32,407

IRR(by using trial and error method=12.4186%

On the basis of NPV project B is better because it gives higher NPV than project A. Whereas, Project A is better than project B on the basis of IRR because project A has slightly higher IRR than project B.

b)The conflict between both the investment appraisal technique is likely due to different cash flow patterns of both the project. In such situation decision should be based on NPV because this is an absolute measure

5 0
3 years ago
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Enny is a line manager at Maxvin Corp. She is assigned the task of understanding and gathering detailed information about the re
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Lead indicators guide management to: Multiple Choice pursue identical strategies as those implemented with lag indicators. take
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Answer:

take actions now that will have positive effects on organizational performance in the future.

Explanation:

Lead indicators can be defined as an economic indices such as level of company stock prices or corporate profits, which usually changes before any significant corresponding change in the state of an economy. Thus, leading indicators serves as leaders or drivers for a business firm or organization.

Generally, lead indicators guide management to take actions now that will have positive effects on organizational performance in the future because they are variables that corresponds to a future variable of interest.

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3 years ago
All of the following are defined as "institutional clients" for purposes of the FINRA communications rules EXCEPT:
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Answer:

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Explanation:

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2 years ago
Explain the importance of departmental income statement in an enterprise in which several separate departments function. Provide
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Answer with Explanation:

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  • Helps in setting budgets and efficiency cuts so that the management of the department works hard to lower operational lead time and other efficiencies found in the operational activities. By setting the budgeted income statement for the department, the appraiser of the company performance is possible by using variance analysis method.
  • The Departmental Income Statement also helps in appraising performance of each department which helps identifying which department requires upper level management attention.
  • It is very useful when undergo financial analysis of departmental income statement which helps in identification of problematic areas, which are lowering profits and thus corrective actions can be taken to overcome these issues.
  • It helps in allocating of jointly shared costs of non production overheads like Accounts Department Costs, Audit Department Costs, Electricity bills, etc. This helps in better appraisal of departments and identification of appropriate basis. In the above case the appropriate basis would be Income balances for accounts department, Income Balances For audit department cost and electricity units consumption of each department.

The above benefits makes the department income statements important for the managerial use.

4 0
3 years ago
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