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bazaltina [42]
2 years ago
5

Last year Aft charged $2,946,667 Depreciation on the Income Statement of Andrews. If early this year Aft purchased a new depreci

able asset, the effect on Andrews's financial statements would be (all other items remaining equal):
Business
1 answer:
Kisachek [45]2 years ago
3 0

Answer:

Decrease in Bank balance and increase in fixed assets

Explanation:

When a new depreciable asset is purchased, the money leaves the bank account hence reducing the bank balance in the statement of financial position, and on the other hand the 'Fixed asset' balance will rise by the same amount; recognizing the addition to the assets of the company. In this scenario the balance sheet totals remain unchanged as the same amount has been subtracted from 'bank' and added to 'fixed assets' all within the asset side.

However, if the asset is debt financed, it will increase the long term liability figure because 'bank loan' will be recognized. Hence the totals of the balance sheet will rise by the amount of the loan on the 'Capital and liabilities' side and the amount of the asset on the 'Asset' side.

Another impact is that the amount of depreciation charged to the Income Statement will be higher than $2,946,667 which was charged in the previous year because the new asset's depreciation will have to be added.

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In a perfectly competitive industry, the short-run supply curve for the market is the:
DENIUS [597]

Answer:

b. marginal cost curve above the average variable cost curve.

Explanation:

A perfect competitive indsutry is a characterised by many firms selling homogenous goods and services. Firms are price takers and there are no barriers to entry or exit of firms in the industry.

The supply curve of a perfectly competitive firm in the short run is the part of the marginal cost curve that lies above the average variable cost curve.

A perfect competition maximises profit where price equals marginal cost.

I hope my answer helps you

3 0
3 years ago
The drawee is the
IRINA_888 [86]

Answer:

C

Explanation:

The drawee is the bank with which the drawer has an account.

8 0
2 years ago
Garden Sales, Inc, sells garden supplies. Management is planning its cash needs for the second quarter. The company usually has
muminat

Answer:

Garden Sales, Inc.

                                                       April            May          June          Total

1. Cash Collections:

Cash sales (20%)                         $92,000   $198,000   $88,000  $378,000

Credit sales:

10% month of sale                         36,800       79,200     35,200       151,200

70% month following sale           123,200    257,600   554,400     935,200

20% second month following      25,600      35,200      73,600      134,400

Total cash collections               $277,600 $570,000  $751,200 $1,598,800

2. Merchandise Inventory:

a.    Purchases Budget                   April            May          June      

Cost of goods sold                      322,000    693,000   308,000

Ending inventory (15%)                 103,950      46,200     35,700

Goods available for sale             425,950    739,200   343,700  

Beginning inventory                      84,000     103,950    46,200

Purchases                                    341,950    635,250   297,500

b. Cash payment for purchases:

50% month of purchase              170,975     317,625    148,750      637,350

50% month following purchase 126,000      170,975    317,625      614,600

Total payment for purchases  $296,975  $488,600 $466,375 $1,251,950

3. Cash Budget

                                                       April            May          June         Total

Beginning cash balance           $46,000   $40,225     $40,425     $46,000

Total cash collections                311,200    652,800     727,600 $1,691,600

Cash available                        $357,200 $693,025   $768,025 $1,737,600

Payment for purchases          $296,975  $488,600 $466,375 $1,251,950

Other payments:

Dividends                                   24,000                                              24,000

Land purchase                                              32,000                           32,000

Selling & administrative exp.   115,000       134,000      73,400      322,400

Total cash payments            $435,975   $654,600  $539,775 $1,630,350

Cash Balance                           (78,775)       38,425    228,250     228,250

Minimum Cash balance         (40,000)      (40,000)  

Cash required                       $118,775         $1,575       0                      0

Cash borrowed                    $119,000        $2,000   (123,400)     (123,400)

Ending balance                       40,225        40,425    104,850       104,850

4. To: The President

From: FC

Subject: Revised Estimates and the Cash Budget

Date: April 26, 2021

The revised estimates will ensure that the company has the ability to pay off its borrowings in April and May by the end of the second quarter.

It should be maintained.

Regards,

Explanation:

a) Data and Calculations:

Budgeted monthly absorption costing income statements for April-July are:

                                                       April            May          June          July

Sales                                           $460,000 $990,000 $440,000 $340,000

Cost of goods sold                      322,000    693,000   308,000   238,000

Gross margin                                138,000    297,000    132,000    102,000

Selling and administrative expenses *

Selling expense                             89,000      94,000     55,000     34,000

Administrative expense                42,000      56,000     34,400     32,000

Total selling and administrative

expenses                                     131,000     150,000     89,400     66,000

Net operating income                  $7,000   $147,000   $42,600   $36,000

                                                       April            May          June          July

Sales                                           $460,000 $990,000 $440,000 $340,000

Credit sales (80%)                        368,000    792,000   352,000   272,000

Cash collections

Cash sales (20%)                         $92,000   $198,000   $88,000  $68,000

Credit sales:

10% month of sale                         36,800       79,200     35,200     27,200

70% month following sale           123,200    257,600   554,400   246,400

20% second month following      25,600      35,200      73,600    158,400

Total cash collections               $277,600 $570,000  $751,200 $500,000

                                                       April            May          June          July

Cost of goods sold                      322,000    693,000   308,000   238,000

Ending inventory (20%)                138,600       61,600     47,600

Goods available for sale             460,600    754,600   355,600  

Beginning inventory                      64,400     138,600      61,600     47,600

Purchases                                   396,200     616,000   294,000

Cash payment for purchases:

50% month of purchase             198,100     308,000    147,000

50% month following purchase 93,800       198,100   308,000

Total payment for purchases $291,800   $506,100 $455,000

Other payments:

Dividends                                   24,000

Land purchase                                              32,000

Selling & administrative exp.   115,000       134,000      73,400

Total cash payments           $430,800     $672,100 $528,400

Principal debt to bank at the end of the quarter =    $121,000

+ Interests: 1% of $119,000 = $1,190

1% of $121,000                         1,210

Total interest owed              $2,400                               2,400

Total debt to the bank at the end of the quarter = $123,400

Revised Estimates:

Credit sales (80%)                        368,000    792,000   352,000   272,000

Cash collections

Cash sales (20%)                         $92,000   $198,000   $88,000  $378,000

Credit sales:

25% month of sale                        92,000     198,000      88,000    378,000

65% month following sale            114,400    239,200     514,800    868,400

10% second month following        12,800        17,600      36,800       67,200

Total cash collections                $311,200  $652,800  $727,600 $1,691,600

                                                        April            May          June          July

Cost of goods sold                      322,000    693,000   308,000   238,000

Ending inventory (15%)                 103,950      46,200     35,700

Goods available for sale             425,950    739,200   343,700  

Beginning inventory                      84,000     103,950    46,200

Purchases                                    341,950    635,250   297,500

Cash payment for purchases:

50% month of purchase              170,975     317,625    148,750

50% month following purchase 126,000      170,975    317,625

Total payment for purchases  $296,975  $488,600 $466,375

Other payments:

Dividends                                   24,000

Land purchase                                              32,000

Selling & administrative exp.   115,000       134,000      73,400

Total cash payments           $435,975    $654,600  $539,775

5 0
3 years ago
Charles Johnson has to make a deposit in his savings account. He has one $20 bill, two $5 dollar bills, seven $1 bills, six quar
ivolga24 [154]

Answer:

Total deposit is $39

Explanation:

Given

\$20\ bills = 1

\$5\ bills = 2

\$1\ bills = 7

Quarters = 6

Dimes = 5

Required

Determine the total

To do this, we simply multiply each dollar bill or coin with its frequency and add up the results.

i.e.

Total = 1 * \$20 + 2 * \$5 + 7 * \$1  + 6 * Quarters + 5 * Dimes

Total = \$37  + 6 * Quarters + 5 * Dimes

1\ quarter = \$0.25

1\ dime = \$0.1

So:

Total = \$37  + 6 * \$0.25+ 5 * \$0.1

Total = \$37  + \$2

Total = \$39

8 0
3 years ago
You are analyzing an investment property. You forecast the effective gross income to be $396,000. The operating expenses for thi
3241004551 [841]

Answer:

<em> $220,000</em>

Explanation:

Given:

Effective Gross Income(EGF) : $396,000

Operating Expenses(OE) : $176,000 ( Including $4,400 reserve for replacements)

To Find Net Operating Income(NOI):

NOI = EGF - OE

NOI = $396,000 - $176,000

NOI = $220,000

So the Net Operating Income is $220,000

7 0
2 years ago
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