Answer:
Part A:
Liabilities=$285,000
Part B:
Liabilities=$255,000
Equity=$255,000
Explanation:
General Rule of Assets, liabilities and equity
Assets= Liabilities+Equity
Part A:
Assets=$710,000
Equity=$425,000
Liabilities=?
$710,000=Liabilities+$425,000
Liabilities=$710,000-$425,000
Liabilities=$285,000
Part B:
Liabilities=Equity
Replace Equity by liabilities
Assets=Liabilities+Liabilities
$510,000=2*Liabilities
Liabilities=$255,000
Equity=$255,000
Answer:
Profit margin= 2%
Debt to capital= 0
Explanation:
We can find out Profit margin through the formula of ROA
Return on Assets= Asset turnover* Profit margin
We have been give ROA, and ATO
ROA=3%
ATO=1.5X
So, 3%=1.5*X
X=2%
Profit margin is 2%
Now debt to capital
It can be calculated from the Dupont analysis which is
ROE=ROA*Equity multiplier
Equity multiplier is Assets/Equity
so,
3%=3%*x
EM= 1
Now, Equity multiplier tells us how much our assets are financed through equity so if it is 1, means Assets/Equity =1
So, Assets= Equity
So, all the assets are financed through equity. None of the assets are financed through debt. So, it suggest debt is 0
Debt to capital = Debt/Capital = 0/capital = 0
Answer:
2. Credit equipment $100,000
3. Debit accumulated depreciation $60,000
Explanation:
When a company trades with another pieces of equipment gain or losses are recognized when there is commercia lsubstance. If not, then the trade-in equipment is posted as the net book value of the old equipment
In both cases, the old equipment is write-off thus:
credit equipment for 100,000
and debit accumualted overhead for 60,000
Now, we look at the option that matches this. The information about the new assets is insuficient as we aren't given information about whether or not thre is commercial substance
Answer:
₱ 16,300.054
Explanation:
The formula for calculating simple interest is as below.
I= p x r x t
In this case, p= 14,800, r = 4.35% and t is 2 years and 4 months
the interest rate is in years; we need to convert two years and four months to years.
=4 months = 4/12 of one year = 0.33
2 years 4 months = 2.33 year
I= 14,800 x 4.35/100 x 2.33
I= 14,800 x 0.0435 x 2.33
I=1,500.054
the amount in the bank will be principal plus interest
=14,800 + 1500
=16,300.054
Answer:
b. inventory for $1516.
Explanation:
Term 2/10, n/30 means there is a discount of 2% is available on payment of due amount within discount period of 10 days after sale and net credit period of 30 days.
Purchase value = $83,000
Purchases return = $7,200
Amount Due = $83,000 - $7,200 = $75,800
As the $75,800 is paid within discount period, so discount will be given to customer
Discount = $75,800 x 2% = $1,516
Payment Made = $75,800 - $1,516 = $74,284
Gross method does not record the discount value it recognise the inventory at its gross amount and discount is adjusted in the inventory account after that.
