A company purchases inventory on terms of net 30 days and resells to its customers on terms of net 15 days. The inventory conver
1 answer:
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Answer:
The following summarizes the solution to the given problem.
Explanation:
The given values are:
Sales,
= $660,000
Expenses,
= $255,453
Received cash revenues,
= $605,934
(a)
According to the accrual, profits would be acknowledged and therefore not necessarily received on the occasion of purchase.
⇒
On substituting the given values, we get
⇒
⇒ ($)
(b)
⇒
On substituting the given values, we get
⇒
⇒ ($)
(c)
- The reliable financial foundation again for a financial consultant is more helpful because it demonstrates or represents the organization's appropriate financial status.
- It accepts the profits throughout a similar time frame.
Answer: Check attachment
Explanation:
In the attachment, note that:
On July 14:
Account payable was calculated as:
= $4400 - $300
= $4100
Merchandise Inventory = $4100 × 2%
= $4100 × 2/100
= $4100 × 0.02
= $82
Cash = $4100 - $82 = $4018.
Check attachment for further explanation.
