Answer:
<em>The </em><u>aging</u><em> of accounts receivable method uses several percentages to estimate the allowance.</em>
Explanation:
An account of receivable aging report lists customer account balances by length of time outstanding.
Answer:
The average collection period is 56.25 days
Explanation:
The average collection period is the number of days' sales in receivables and calculated by using following formula:
The number of days' sales in receivables = 360/Accounts receivable turnover ratio
Accounts Receivable Turnover = Net Credit Sales/Accounts Receivable
Net Credit sales = Total Sales - the sales are for cash = $1,800,000 - 20% x $1,800,000 = $1,440,000
Accounts Receivable Turnover = $1,440,000/$225,000 = 6.4 times
The number of days' sales in receivables = 360/6.4 = 56.25 days
Answer:
The present of worth of machine operating cost is $ 228,061.55
Explanation:
In calculating the present worth of the machine operating cost,I grew the cost of $34000 per year from year 3 onwards by 6% , thereafter I discounted the increased machine operating cost with the applicable discount factor in each year as shown in the attached spreadsheet.
Answer:
See below
Explanation:
a. Earnings per share
= After tax earnings / Number of common shares outstanding
= $3,000,000 / 761,000
= $3.9 per share
b. Assuming that a share of Bozo Oil's company has a market value of $40, then, the firm's price earning ratio would be:
= Common stock market value / Earnings per share
= $40 / $3.9
= 10.26
c. The book value of a share of Bozo Oil's common stock
Book value = (Assets - Liabilities) / Number of shares outstanding
= ($15,000,000 - $9,000,000) / 761,000
= $6,000,000 / 751,000
= $7.88
Answer:
The correct answer is when income is exchanged for goods or services.
Explanation:
When we earn income, a portion of it goes to savings, and the balance income is called the disposable income. This disposable income can be used in various ways. You can invest it in income generating assets such as stocks, real estate, or you can exchange that for goods and services which is called the consumption.
Generally, the rate of consumption grows when the income grows.
