Answer:
Inventory $200,000
Cash $50,000
Notes payable $150,000
Explanation:
Data provided in the question:
Cost of the inventory purchased = $200,000
Amount paid in cash = one-fourth
= one-fourth of $200,000
= $50,000
For the remaining balance signed a note i.e = $200,000 - $50,000
= $150,000
Now,
This transaction will be recorded as:
Inventory $200,000
Cash $50,000
Notes payable $150,000
Someone who nourishes and evokes the best qualities in people
Answer:
a. Value.
Explanation:
The opportunity cost of a choice is the value of the opportunities lost.
In Economics, Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.
Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.
Hence, the opportunity cost of a choice is the benefits that could be derived in from another choice using the same amount of resources.
<em>For instance, if you decide to invest resources such as money in a food business (restaurant), your opportunity cost would be the profits you could have earned if you had invest the same amount of resources in a salon business or any other business as the case may be.</em>
Answer:
Part a.
Accounts receivable turnover ratio is the shows how many times accounts receivable can be converted in to cash during the period. The formula for calculating the same is given below.
Accounts receivable turnover ratio = Net credit sales / Average accounts receivable
The following table shows the accounts receivable turnover ratio of MCB and ABI:
Particulars MCB ABI
Net sales $5,170 $39,046
Average Accounts Receivable $517 $2,606
Accounts Receivable Turnover rate 10 14.98
Part b.
Day's sale outstanding shows the average number of days taken to collect the accounts receivable. The formula for calculating the same is given below.
Day's sale outstanding = Accounts receivable / Total credit sales × 365
The following table shows the days sale outstanding of MCB and ABI:
Particulars MCB ABI
Net sales $5,170 $39,046
Average Accounts Receivable $517 $2,606
Day's sale outstanding 36.5 24.36
