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yan [13]
3 years ago
12

Maxwell and Smart are forming a partnership. Maxwell is investing a building that has a market value of $180,000. However, the b

uilding carries a $56,000 mortgage that will be assumed by the partnership. Smart is investing $120,000 cash. The balance of Maxwell's Capital account will be:
Business
1 answer:
Margarita [4]3 years ago
8 0

Answer:

The balance of Maxwell's Capital account will be $124,000

Explanation:

The computation of the Maxwell capital account balance is shown below:

= Market value of the building - mortgage on the building

= $180,000 - $56,000

= $124,000

The cash invested by the smart is not considered in the computation part because the question has asked for the Maxwell, not for smart. So, we ignored it.

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Cola Inc. Soda Co. Fiscal Year Ended: 2015 2014 2013 2015 2014 2013 Net Sales $ 39,819 $ 35,690 $ 36,444 $ 62,438 $ 47,932 $ 47,
Colt1911 [192]

Answer:

2015 Cola Inc:

A/R  TO               9.51

Days to collect   38.00

2014 Cola Inc:

Inventory TO 10.18

Days to collect 36

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A/R    TO 11.25

Days to collect   32

2014 Soda Co

A/RTurnover 11.28

Days to collect 32

Explanation:

<u>2015</u>

\frac{COGS}{Average Inventory} = $Inventory Turnover  

<em><u>​where: </u></em>

$$Average Account Receivable =(Beginning A/R + Ending A/R)/2

Sales             39,819

ending             4,531

beginnin         3,839

$$Average A/R=4531 + 3839)/2

Avg A/R           4185

\frac{39,819}{4185} = $A/RTurnover

A/R  TO 9.514695341

\frac{365}{A/R   TO} = $Days to collect

\frac{365}{9.51469534050179} = $Days to collect

Days on Inventory 38

<u>2014:</u>

\frac{35690}{3505} = $A/RTurnover

Inventory TO 10.18259629

\frac{365}{10.1825962910128} = $Days to collect

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Soda Co:

<u>2015</u>

\frac{62483}{5554.5} = $A/RTurnover

A/R    TO 11.24907732

\frac{365}{11.2490773246917} = $Days to collect

Days to collect   32

<u>2014</u>

\frac{47932}{4250} = $A/RTurnover

A/RTurnover 11.27811765

\frac{365}{Inventory TO} = $Days on Inventory

\frac{365}{11.2781176470588} = $Days to collect

Days to collect 32

<u></u>

<u></u>

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