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3 years ago

Consider the following financial statement information for the Sourstone Corporation:

Business

1 answer:

DENIUS [597]3 years ago

5 0

Answer:

A. 56.32 days

B. 40.38 days

Explanation:

The Operating cycle is the Inventory period + AR period

Inventory period= 365/(Cost of goods sold/Average inventory)

Average inventory= (Beginning Inventory + Ending Inventory)/2

Accounts Receivable period= 365/(Credit Sales/Average Accounts Receivable )

Average Accounts Receivable= (Beginning Accounts Receivable + Ending Inventory Accounts Receivable)/2

Calculated Inventory period= 42.58 days

Calculated Accounts Receivable period= 13.74 days

The Cash cycle is also called the Net Operating cycle which is the Inventory period + Accounts Receivable period- Accounts Payable period

Accounts Payable period= 365/(Cost of goods sold/Average Accounts Payable)

Average Accounts Payable = (Beginning Accounts Payables + Ending Inventory Accounts Payable)/2

Calculated Accounts Payable period= 15.94 days

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One disadvantage of relational contracting is that it may cause firms to abandon established relationships. a. True b. False

nekit [7.7K]

Answer:True

Explanation:

Adverse approaches to contracting in some companies have led to reduced efficient industry with lower productivity levels. However, the relational contracting approach has evidently increased the efficiency by developing partnering agreements and joints team goals and reviews that enhanced financial returns.

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4 years ago

Waterway Industries purchased a depreciable asset for $837300 on January 1, 2018. The estimated salvage value is $84000, and the

murzikaleks [220]

Answer:

$222,100

Explanation:

Cost = $837,300

Residual value = $84,000

Useful life = 9 years

Now,

Annual straight line depreciation = $\frac{Cost-Residual Value}{Useful life}$

Annual straight line depreciation = $\frac{837,300 - 84,000}{9}$

Annual straight line depreciation = $\frac{753,300}{9}$

Annual straight line depreciation = $83,700

Accumulated depreciation for three years i.e., 2018, 2019 and 2020 would be:

Accumulated depreciation = 3 × $83,700

Accumulated depreciation = $251,100

Book value (at the end of year 2020) = Cost - Accumulated depreciation

Book value (at the end of year 2020) = $837,300 - $251,100

Book value (at the end of year 2020) = $586,200

Revised useful life = 5 years

No. years asset has been used = 3 years

Remaining useful life = 2 years

Revised salvage value = $142,000

Therefore, depreciation expense for the remaining three year would be:

Revised depreciation expense = $\frac{Book value at the end of 2020 - Revised residual Value}{Remaining useful life}$

Revised depreciation expense = $\frac{586,200 - 142,000}{2}$

Revised depreciation expense = $\frac{444,200}{2}$

Revised depreciation expense = $222,100

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3 years ago

Anyone can become a successful business owner. Think about whether you agree or disagree.

steposvetlana [31]

Answer:

i dissagree because some people may just not be cut out for the job and also they could ve cut out and just not get and business ect.

3 0

3 years ago

The worst possible consequence of conflict is ______.

Afina-wow [57]

Violence is the worst possible consequence of conflict.
hope this helps!

6 0

3 years ago

Read 2 more answers

You are opening a savings account that earns compound interest. Which compounding frequency will earn you the MOST money?

Ne4ueva [31]

In general, it is true that if the frequency is higher, then you make more money. For example, suppose you have a capital 1$ and the interest rate can be either 50% compunded annually or 25% compounded semiannually (same total interest in a year, different compounding rate). In the first case you get 1.5$ back at the end of the year, while in the second case after 1 semester you have 1.25$. After 2 semesters, you have 1.56$. You cannot make infinite money this way though; you can at most gain a factor of 2.7 by reducing the intervals of compounding.
The correct answer is the highest frequency, namely when the interest is compounded as frequently as possible (as long as the total interest rate is the same).

3 0

3 years ago