What is the discount rate?

The Bears Corporation has provided you the following information:Increase in accounts receivable balance 50,000 Net sales 500,00

Sliva [168]

Answer:

A. cash collected is 442,500

B. Cash paid to suppliers is 62,000

Explanation:

A. To determine the cash collected for the period, the account that we should analyze is the accounts receivable.

Net sales 500,000

Less: Increase in accounts receivable 50,000

Less: write off 7,500

total collection 442,500

*increase in accounts receivable means lesser amount of collection than the sale on account

*write off will decrease the accounts receivable which means, it affects the cash collection computation.

B.To determine the cash paid to suppliers, let’s analyze the accounts payable account.

Increase in inventory 45,000

add: decrease in accounts payable 17,000

total cash paid to suppliers is 62,000

*increase in inventory implies an additional purchase made by the company

*decrease in accounts payable resulted from cash payment made to suppliers.

5 0

4 years ago

Hochberg Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Tota

UkoKoshka [18]

Answer:

The correct answer is 2.39

Explanation:

TOTAL WAGES AND SALARIES = $433,000

DEPRECIATION = $160,000

OCCUPANCY = $169,000

TOTAL = $762,000

here for calculating the activity rate for activity cost pool , we will only use the given percentages of wages and salaries, depreciation and occupancy in the activity cost pool -

Amount Activity cost pool Amount allocated

Wages $433,000 20% $86,600

Depreciation $160,000 10% $16,000

Occupancy $169,000 10% $16,900

TOTAL $119,500

Cost driver machine hours 50,000

Rate per machine hour $119,500 / 50,000

2.39

Therefore the activity rate for activity cost pool is 2.39

4 0

3 years ago

Baillie Power leased high-tech electronic equipment from Courtney Leasing on January 1, 2021. Courtney purchased the equipment f

Sholpan [36]

Answer:

Beginning Installment Interest Ending

1 144,605.00 20,000 0 124,605

2 124,605.00 20,000 3,738.15 108,343

3 108,343.15 20,000 3,250.29 91,593

4 91,593.44 20,000 2,747.80 74,341

5 74,341.25 20,000 2,230.24 56,571

6 56,571.48 20,000 1,697.14 38,269

7 38,268.63 20,000 1,148.06 19,417

8 19,416.69 20,000 582.50 0

Journal entries:

Cash 20,000 debit

lease receivables 124,605 debit

Lease Equipment 144,605 credit

--Jan 1st

cash 20,000 debit

interest revenue 3,738.15 credit

--March 31st

cash 20,000 debit

interest revenue 3,250.29 credit

lease receivables 16749.71 credit

--June 30th

cash 20,000 debit

interest revenue 2,747.80 credit

lease receivables 17252.20 credit

--Sep 30th

cash 20,000 debit

interest revenue 2,230.24 credit

lease receivables 17,769.76 credit

--Dec 31st

Explanation:

<em><u>Present value of the lease payment:</u></em>

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 20,000

time 8 (eight quarters)

rate 0.03 (12% annual --> divided among four quarters = 3%)

$20000 \times \frac{1-(1+0.03)^{-8} }{0.03} = PV\\$

PV $144,605.6591

We build the table starting from the present value. Then, we subtract hte installment and in the second period we start doing interest calculations

(not in the firt one as it is being paid in the present thus, no interest accrued)

8 0

3 years ago

Emily buys only ice cream and chocolate and spends all of her income on the two items. Suppose the price of ice cream rises. Emi

Katyanochek1 [597]

Answer:

d. The income effect must have been bigger than the substitution effect since we observe Emily buying less ice cream.

Explanation:

Since in the given situation it is mentioned that the ice cream is increased and she adjust her optimal consumption so that she purchased less ice cream and more chocolate so here the income effect would be high as compared with the subsitution effect as the high price of the ice cream decrease the real income with the actual income left and it would lead to purchase less

6 0

3 years ago

An example of technological change is A. a firm rearranging the layout of a retail store to increase sales. B. a firm's workers

pashok25 [27]

Answer:

D. both a and b

Explanation:

There are 3 stages to technological change:

1. Invention - this is when new technology is created or invented.

2. Innovation - this is application of new invention

3. Diffusion - diffusion is when knowledge and use of new technology spreads. Training is one of the ways through diffusion can occur. Therefore , training is an example of technological change.

I hope my answer helps you

4 0

3 years ago