ABC, Inc. a contracting business has purchased a truck costing $50,000 with a depreciable life of 5 years. Using

sales $ 282,880 $ 270,800 $ 252,600 $ 234,560 $ 150,000 cost of goods sold 128,200 122,080 115,280 106,440 67,000 accounts recei

kherson [118]

Since 2017 will serve as the base year, the denominator for all calculations will be the $150,000 in net sales from that year.

2017: 2018: 2019:

= 150,000 / 150,000 = 234,560 / 150,000 = 252,600 / 150,000

= 100% = 156.37% = 168.40%

2020: 2021:

= 270,800 / 150,000 = 282,880 / 150,000

= 180.53% = 188.59%

The upward trend in this trend's net sales is encouraging.

What is the trend for cost of goods sold?

2017: 2018: 2019:

= 67,000 / 67,000 = 106,440 / 67,000 = 115,280 / 67,000

= 100% = 158.87% = 172.06%

2020: 2021:

= 122,080 /67,000 = 128,200 / 67,000

= 182.21% = 191.34%

This is Unfavorable since the cost of the goods is an expense.

What is the trend for accounts receivable?

2017: 2018: 2019:

= 9,000 / 9,000 = 15,200/ 9,000 = 16,400 / 9,000

= 100% = 168.87% = 182.22%

2020: 2021:

= 17,300 / 9,000 = 18,100 / 9,000

= 192.22% = 201.11%

More Accounts Receivables are a negative because the business needs cash, so they should be reduced.

What is Trend Analysis?

Technical analysis's trend analysis method makes use of trend data that was recently seen in order to forecast future stock price movements. To predict the long-term direction of market sentiment, trend analysis makes use of previous data, such as price fluctuations and transaction volume.

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4 0

2 years ago

assume you take a first and second loan on a commercial property; both are interest-only loans with one financing 60% of the pur

Juliette [100K]

If you look at the information in the question, you'll notice that the return is less than the cost of borrowing (loan interest rate) (ATIRR). This indicates that there is negative leverage and that the property cannot utilise it.

Positive leverage would be created in the first year if the property was purchased with expected returns equivalent to leverage.

Financial leverage is the process of using borrowed money (debt) to buy assets in the expectation that the income from the new asset or capital gain would outweigh the cost of borrowing. The leverage is summed up in this idea. By using debt (loan money), or leverage, we mean to increase the profits on an investment or project.

Leverage allows investors to increase their market buying power.

Leverage is a tool used by businesses to finance their assets. Rather than issuing stock to raise money, businesses can use debt to finance operations in an effort to boost shareholder value.

The most popular financial leverage ratios to determine how hazardous a company's position is are debt-to-assets and debt-to-equity.

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6 0

1 year ago

On December 31, 20X5, Paris Corporation acquired 60 percent of Sanlo Company's common stock for $180,000. At that date, the fair

Anit [1.1K]

Answer:

1. b. $15,000

2. a. $13,200

Explanation:

a. Fair Value of Consideration $180,000

Non Controlling Interest $120,000

Differential in value of Sanlo $45,000

Good will = $15,000

b. Value of Equipment = $10,000 / 5 = $2,000

$2,000 * 60% = $1,200

Value of land = $15,000 * 60% = $9,000

Value of Sanlo's Inventory = $5,000 * 60% = $3,000

Total value amortize using equity method is $13,200

7 0

3 years ago

A company had the following cash flows for the year: (a) Purchased inventory, $60,000 (b) Sold goods to customers, $90,000 (c) R

In-s [12.5K]

Answer:

The amount would be reported for net investing cash flows on the Statement of Cash Flows is –$190,000, that is, minus $190,000.

Explanation:

Cash flow from investing activities refers to the section of the cash flow statement that provides amount of cash that is generated or spent on investing activities.

Investing activities comprises of purchases or sales property plant, and equipment (PP&E), marketable securities (i.e., stocks, bonds, etc.), and among others.

From the question, the amount of net investing cash flows can be computed as follows:

Particulars Amount ($)

Purchased land –180,000

Purchased treasury stock –40,000

Sold delivery truck 30,000

Net cash flow from investing activities –190,000 

Therefore, the amount would be reported for net investing cash flows on the Statement of Cash Flows is –$190,000, that is, minus $190,000.

7 0

3 years ago

What are the advantages of following a strict repayment schedule? Check all that apply.

MAXImum [283]

Answer:

The correct answer are 2, 4 and 5.

Explanation:

Repayment schedule is the schedule or the document which is in detail specifying the particular terms of the loan of borrower, like monthly payment, interest rate, due dates. The benefits or the advantage of the strict schedule of the repayment, prevent being charged from the additional or the extra fees, prevent from increasing the rate of interest and also shows or states that the borrower is responsible for this schedule.

8 0

3 years ago