Answer: Williamson industries would have obtained $7.78 billion in sales
Explanation: According to the question, the company is having a total of $2 billion in fixed assets. The fixed assets are currently operating at 90% (0.9) of its total capacity. At his level, the company is able to achieve a sales figure of $7 billion. The implication is as follows;
Fixed assets (at 100%) = 2 billion
Fixed assets (at 90%) = 2 * 0.9
Fixed assets (at 90%) = 1.8
If the company utilizes $1.8 billion to achieve a $7 billion sales figure, then operating at full capacity (100%) would yield the following;
7/x = 90/100
(Where x equals sales level at 100% capacity)
7/x = 0.9
Cross multiply
x = 7/0.9
x = 7.7777...
x ≈ 7.78
Therefore, if Williamson Industries had been operating at full capacity, it would have obtained a sales level of $7.78 billion
Answer:
Please find solutions in the attached images
Explanation:
I have attached images of my journal entry solutions to this question as required.
Answer:
b. Enterprise fund and depreciation on the capital assets should be recorded.
Explanation:
Cash flow can be defined as the net amount of cash and cash- equivalents that is flowing into (received) and out (given) of a business. There are three components of the cash flow;
1. Operating cash flow: all cash generated from the business activities of an organization.
2. Financing cash flow: all payments made by an organization and profits from issuance of debts and equity.
3. Investing cash flow: costs associated with purchasing of capital assets and investments of cash resources in other businesses.
Capital assets used by an enterprise fund should be accounted for in the enterprise fund and depreciation on the capital assets should be recorded.
Additionally, depreciation can be defined as the reduction of cost of a fixed asset systematically until the value of the asset becomes zero.
The answer is true. Individuals who need to work for themselves frequently like to work their business, at any rate at first, as a sole proprietorship. Leeway of the sole proprietorship is that it is a generally simple and cheap type of business to set up. One disadvantage of a sole proprietorship is that the proprietor has boundless obligation. Notwithstanding, right now, Eric isn't stressed over hazard. The boundless risk factor does not seem, by all accounts, to be an issue for him.
