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const2013 [10]
3 years ago
15

Hinkle Corporation buys on terms of 2/15, net 60 days. It does not take discounts, and it typically pays on time, 60 days after

the invoice date. Net purchases amount to $550,000 per year. On average, what is the dollar amount of total trade credit (costly free) the firm receives during the year, i.e., what are its average accounts payable
Business
1 answer:
Readme [11.4K]3 years ago
8 0

Answer: $90,411

Explanation:

Average Accounts payable = Net Purchases * Average collection period / 365

Average collection period is 60 days

Net Purchases as stated is $550,000

Average accounts payable = 550,000 * 60 / 365

= 90,410.9589

= $90,411

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In business, managers and employees are faced with many decisions. Management writer Ken Blanchard and religious leader Norman V
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Answer: In order to answer this, we must first add the options. They are as follows:

A. Am I acting fairly?

B. Is it balanced?

C. How will it make me feel about myself?

D. Will it help me further my career?

E. Is it legal?

The correct option is D. Will it help me further my career. This is a question that should NOT be asked when facing an ethical dilemma.

Explanation:

Ethics are moral principal that guide one's actions and attitudes. Now, all the options above can be properly weighed using ethical standards.

An Ethical dilemma is a situation in which a choice must be made between two options, neither of which will resolve the situation in an ethically acceptable manner.

We will analyze the options one after the other.

Let us start with option A. Am I acting fairly?

When faced with an ethical dilemma, one good question to ask is if an individual is acting fairly, that is, are they acting according to accepted ethical standards? If one's actions go contrary to ethics, then they should probably not undertake such an action. Therefore, this question SHOULD BE ASKED.

Option B. Is it balanced?

Balance here talks about equality. In this case this question looks at whether the action will favour one party over another, or if it will favour everyone equally. Therefore, this question SHOULD BE ASKED.

Option C. How will it make me feel about myself?

This question looks at the after effect of an action, if the action will make you feel good or bad about yourself later on. If the action will make you feel good, then it should be undertaken, but if it will make you feel bad, it should not be undertaken. Therefore, this question SHOULD BE ASKED.

Option D. Will it help me further my career? (Correct option)

This is a wrong question to ask when experiencing an ethical dilemma because it is not a question about ethics or morals, only career advancement, and it does not focus on the right or wrong of an action. Also, this is a selfish question to ask and it does not take into consideration the effect that the action will have on others. This question should therefore, NOT BE ASKED, because it is not a proper reflection of one's ethics.

Option E. Is it legal?

This question looks at the legality of an action, therefore illegal actions should not be undertaken, while legal actions should be pursued. This is a question that SHOULD BE ASKED.

6 0
3 years ago
A company's days' cash on hand is computed by dividing:​ Group of answer choices ​cash and short-term investments by daily cash
Romashka-Z-Leto [24]

Answer:

The answer is A. ​cash and short-term investments by daily cash operating expenses

Explanation:

This is calculated as follows:

cash and short-term investments(cash equivalents) ÷ daily cash operating expenses.

Cash equivalents are very short-term securities. They are very liquid and can be converted to cash very quickly. Examples are bank accounts short-term securities like treasury bills.

Days cash on hand is the number of days that a firm can afford to pay its operating expenses, given the amount of cash available.

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3 years ago
The accounting department of your company has just delivered a draft of the current year's financial statements to you. The summ
marishachu [46]

Answer and Explanation:

The computation is shown below:-

Incorrect

ROA = Net Income ÷ Average assets

= $101,900 ÷ (($550,000 + $573,000) ÷ 2)

= $101,900 ÷ $561,500

= 0.18

ROE = Net Income ÷ Average equity

= $101,900 ÷ (($340,000 + 356,000) ÷ 2)

= $101,900 ÷ $348,000

= 0.29

Debt Ratio = Total debt ÷ Average Assets

= $217,000 ÷ (($550,000 + $573,000) ÷ 2)

= $217,000 ÷ $561,500

= 0.39

EPS = Net Income ÷ Number of Common Shares

= $101,900 ÷ 22,000

= $4.63

Correct

ROA = Net Income ÷ Average assets

= ($101,900 - $8,500) ÷ (($550,000 + $573,000 - $8,500) ÷ 2)

= $93,400 ÷ $557,250

= 0.17

ROE = Net Income ÷ Average equity

= ($101,900 - $8,500) ÷ (($340,000 + 356,000 - $8,500) ÷ 2)

= $93,400 ÷ $343,750

= 0.27

Debt Ratio = Total debt ÷ Average Assets

= $217,000 ÷ (($550,000 + $573,000 - $8,500) ÷ 2)

= $217,000 ÷ $276,500

= 0.78

EPS = Net Income ÷ Number of Common Shares

= ($101,900 - $8,500) ÷ 22,000

= $4.25

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