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2 years ago

Financial Statements, Closing Entries & Ratio Analysis

Business

2 answers:

kvasek [131]2 years ago

6 0

The question requires preparation of Financial Statements.

i. Income Statement :

Service Revenue 68,400

Advertising Expense 1,750

Salaries and Wages Expense 47,800

Utilities Expense 5,400

Supplies Expense 2,600

Depreciation Expense 8,400

Interest Expense 1,100

Rent Expense 1,800

Total Expense 68,850

Net Loss - 450

ii. Financial Statement :

Assets :

Cash 10,450

Accounts Receivable 16,800

Prepaid Rent 7,600

Supplies 1,500

Inventory 6,400

Buildings 125,000

Equipment 32,000

Total Assets 199,750

Liabilities :

Accumulated Depreciation – Equipment 7,200

Accumulated Depreciation – Buildings 21,000

Accounts Payable 13,900

Notes Payable (due 2024) 49,000

Unearned Service Revenue 9,450

Equity :

Share Capital 76,000

Retained Earnings 31,650

Dividends 8,000

Debit Net Loss 450

Debit Total Equity and Liabilities 199,750

b. Ratio Analysis :

i Current Ratio :

Current Assets / Current Liabilities 1.7 times

ii Acid Test Ratio

Current Assets - Inventory / Current Liabilities 1.49 times

iii Account receivable turnover [Account Receivable / Sales ] * 365 84 days

iv Average collection period 365 / Average receivable turnover 4.29

v Profit Margin

Profit / Sales - 0.6%

vi Debt to total assets

Total Debt / Total Asset 1.98 times

vii Return on Asset Operating Income / Total Asset 0.0023

viii Times interest Earned EBIT / Interest Expense 0.4 times

Learn more about business at brainly.com/question/26154564

KATRIN_1 [288]2 years ago

5 0

Answer: im not sure don't use my answer.

Explanation: CAHS CASH CASH

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raketka [301]

Answer:

B) raise costs and increase demand for its product

Explanation:

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If advertising is successful , it increases the demand for their goods and services.

Advertising also increases the cost of production.

I hope my answer helps you.

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3 years ago

The term used to describe the degree to which tasks in an organization are subdivided into separate jobs is called ________.

lyudmila [28]

Answer:

work specialization

Explanation:

The term being described is known as work specialization. This term, also known as division of labor, is mainly used by companies in order to divide a large job position into smaller, single tasks that can be completed by one individual. The individual that is given such a task is trained thoroughly in order for them to become a specialist in that task and output more precise workloads.

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3 years ago

The following December 31, 2021, fiscal year-end account balance information is available for the Stonebridge Corporation: Cash

lys-0071 [83]

Answer:

2021 Balance Sheet

$5,900 Cash

$29,000 Accounts Receivable

$6,500 short-term investments

$69,000 Inventory

$110,400 TOTAL CURRENT ASSETS

$ 165,000 Property, plant, and equipment (net)

$165,000 TOTAL NON CURRENT ASSETS

$275,400 TOTAL ASSETS

$48,000 Accounts Payable

$1,000 Interest Payable

$20,000 Salaries Payable

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Explanation:

To complete the Total Current Assets is necessary to find the Short Term Investments, which is possible to know because the current ratio must be 1,6.

With this information it's possible to know that the total current Asssets are $110,400, and the Short Term Investments are $6,500.

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3 years ago

The $1,000 face value ABC bond has a coupon rate of 10%, with interest paid annually, and matures in 3 years. If the bond is pri

dybincka [34]

Answer:

Bond Price = $951.9633746 rounded off to $951.96

Explanation:

To calculate the quote/price of the bond today, which is the present value of the bond, we will use the formula for the price of the bond. As the bond is an annual bond, we will use the annual coupon payment, annual number of periods and annual YTM. The formula to calculate the price of the bonds today is attached.

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Bond Price = $951.9633746 rounded off to $951.96

7 0

3 years ago

Gomez runs a small pottery firm. He hires one helper at $11,500 per year, pays annual rent of $7,000 for his shop, and spends $2

madreJ [45]

Answer:

in this problem, we need to calculate Gomez's accounting and economic profit. To do this, let us first classify and list the explicit and implicit costs. Revenue: Sales: $85,000 Explicit costs: Cost of one helper: $18,000 Rent: $8,000 Materials: $24,000 These are the costs that require an outlay of cash. Implicit costs: Opportunity cost of funds invested in equipment: $7,000 Gomez could have invested the funds in another asset that could earn him $7,000 Opportunity cost of working as a potter in his own shop: $20,000 Gomez could have worked as a potter for a competitor that could earn him $20,000. This is the worth of Gomez's skill as a potter. Entrepreneurial talent: $4,000 This is the worth of Gomez's talent in running the business. These costs do not require an outlay of cash. These are the implicit costs. Now, we are ready to calculate both the accounting and economic profit of Gomez. a. Calculate the accounting profit for Gomez's pottery firm. $_ Accounting profit = Total Revenue − Total Explicit Costs Accounting profit = $ 85 , 000 − ( $ 18 , 000 + $ 8 , 000 + $ 24 , 000 ) Accounting profit = $ 85 , 000 − $ 50 , 000 Accounting profit = $ 35 , 000 The accounting profit is equal to $35,000. b. Now calculate Gomez's economic profit. $_ Economic profit = Total Revenue − Total Explicit and Implicit Costs Economic profit = $ 85 , 000 − ( $ 18 , 000 + $ 8 , 000 + $ 24 , 000 + $ 7 , 000 + $ 20 , 000 + $ 4 , 000 ) Economic profit = $ 85 , 000 − $ 81 , 000 Economic profit = $ 4 , 000 The economic profit is equal to $4,000.

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3 years ago