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2 years ago

A business would like to invest in a new product, but they are short on extra

1 answer:

7 0

Given the scenario described herein, one good solution for the business to invest in a new product when it is short on cash is <u>B. Liquidate some inventory to increase cash flow.</u>

In accounting, cash includes bills, coins, bank balances, money orders, and checks. Cash is the first item in most balance sheets, especially if the company is reporting liquidity. Cash happens to be the most liquid of all assets. Cash also includes cash equivalents, which are assets readily converted into cash.

Thus, the company does not need to raise prices, fire employees, or cut wages to raise cash. It can liquidate some inventory at lower prices if necessary.

Learn more about meeting cash requirements at brainly.com/question/735261

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Concrete Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Account

Shalnov [3]

Answer:

Oct. 1

Rent Expense $2,800 (debit)

Cash $2,800 (credit)

Oct 3.

Advertising Expense $525 (debit)

Cash $525 (credit)

Oct 5.

Supplies $1,250 (debit)

Cash $1,250 (credit)

Oct 6.

Office Equipment $9,300 (debit)

Accounts Payable $9,300 (credit)

Oct 10.

Cash $16,600 (debit)

Accounts Receivable $16,600 (credit)

Oct 15.

Accounts Payable $3,720 (debit)

Cash $3,720 (credit)

Oct 27.

Miscellaneous Expense $590 (debit)

Cash $590 (credit)

Oct 30.

Utilities Expense $275 (debit)

Cash $275 (credit)

Oct 31.

Accounts Receivable $50,160 (debit)

Fees Earned $50,160 (credit)

Oct 31.

Utilities Expense $830 (debit)

Cash $830 (credit)

Oct 31.

Capital; Jason Payne $1,700 (debit)

Cash $1,700 (credit)

Explanation:

Transactions are recorded when they occur or incur according to Matching Principle.

Note ; Cash withdrawals reduce the owners capital account and decreases the assets of cash.

6 0

4 years ago

Byrd Company had the following transactions during 2016 and 2017:

-BARSIC- [3]

Answer:

A. Dec. 24, 2016

Dr Equipment-Computer58800

Cr Accounts payable 58800

Dec. 29, 2016

Dr Cash 60000

Cr Notes payable 60000

Dec. 30, 2016

Dr Retained earnings 20000

Cr Dividends payable 20000

Dec. 31, 2016

Dr Interest expense 40

Cr Interest payable 40

Jan. 2, 2017

Dr Accounts payable 58800

Cr Cash 58800

Jan. 5, 2017

Dr Dividends payable 20000

Cr Cash 20000

Jan. 28, 2017

Dr Interest payable 40

Dr Interest expense560

Dr Notes payable 60000

Cr Cash 60600

B.$ 138840

C. 2016 1.9

Explanation:

a. Preparation of the journal entries for Byrd for both 2016 and 2017.

Dec. 24, 2016

Dr Equipment-Computer58800

[$60000 x (1-0.02)]

Cr Accounts payable 58800

(To record purchase of computer on account)

Dec. 29, 2016

Dr Cash 60000

Cr Notes payable 60000

(To record issuance of note payable)

Dec. 30, 2016

Dr Retained earnings ($2.00 x 10000) 20000

Cr Dividends payable 20000

(To record dividends declared)

Dec. 31, 2016

Dr Interest expense 40

($60000 x 12% x 2/360)

Cr Interest payable 40

(To record interest accrued on the note)

Jan. 2, 2017

Dr Accounts payable 58800

Cr Cash 58800

(To record payment on account)

Jan. 5, 2017

Dr Dividends payable 20000

Cr Cash 20000

(To record payment of dividends)

Jan. 28, 2017

Dr Interest payable 40

Dr Interest expense560

($60000 x 12% x 28/360)

Dr Notes payable 60000

Cr Cash 60600

(To record payment on note and interest thereon on maturity)

B. Calculation to Show how the preceding items would be reported in the current liabilities section of Byrd's December 31, 2016, balance sheet.

BYRD COMPANY

Balance Sheet (Partial)

December 31, 2016

Current liabilities

Accounts payable 58800

Notes payable 60000

Interest payable 40

Dividends payable 20000

Total current liabilities $ 138840

C. computation for the current ratio at the end of 2016

Using this formula

Current ratio = Current assets/Current liabilities

End of 2015: 2.4 = $1200000/Current liabilities

Current liabilities = $1200000/2.4 = $500000

End of 2016: Current assets = $1200000 + $60000 = $1260000

Current liabilities = $500000 + $58800 + $60000 + $20000 + $40 = $638840

Now let calculate the Current ratio

Current ratio = $1260000/$638840

Current ratio= 1.9

Therefore Byrd's current ratio at the end of 2016 is 1.9

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3 years ago

Suppose iris discovers an element of the it strategic plan stating that it will reduce costs by implementing a specific new tech

torisob [31]

Strategic plans are usually put in place in order to increase efficiency and to reduce cost. In the scenario given above, Iris has discovered a loophole in the IT strategic plan, because he is aware that a technology that is meant to reduce cost is not going to do so. Because of this, it is right for Iris to speak up and make that fact known. If he refuses to do this, the goal of the strategic plan to reduce cost will be defeated.

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3 years ago

Which of the following is a depository financial institution?

Darya [45]

The answer is "Online Bank"

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3 years ago

Read 2 more answers

A __________ for a sales job would include information on how often the average salesperson's product is rejected by the prospec

ANTONII [103]

A realistic job preview for a sales job would include information on how often the average salesperson's product is rejected by the prospect and how a salesperson has to learn not to take this rejection personally. it would also tell prospects about how much time can go into making a sale before the salesperson ever earns any commission. This helps people decide if they are a good option for a certain position. Informed decisions can reduce employee turnover, and people will be less likely to start their jobs and experience disappointment or confusion as a result of not knowing about key details of the work.

3 0

3 years ago