Answer:
Debt to Asset Ratio 0.3331 or 33.31%
Explanation:
Debt to Asset Ratio = Total Debt / Total Assets
Debt to Asset Ratio = Total Liabilities / Total Assets
Debt to Asset Ratio = 43,300 / 130,000
Debt to Asset Ratio = 0.3331 = 33.31%
d.Total liabilities 43300 Total assets 130000 is used to calculate Debt to total asset ratio.
* I am not sure that in the question given the a, b,c,d and e
1. are the option to choose
or
2. this is all the data to calculate debt to total asset equity.
In cash Condition 1.
Answer is " d.Total liabilities 43300 Total assets 130000 "
In cash Condition 2.
Answer is " 0.3331 or 33.31% "
Answer:
A. True
Explanation:
The terms of 2/10, net 30 implies that the firm is entitled to receive a 2 percent discount if it makes payment within 10 days for the goods it bought on term but the seller expects to pay full amount of the amount due in 30 days if it fails to pay within 10 days.
However, since there will be no more discount after the discount period, the cost of trade credit will continue to fall longer the payment is extended. For this question this can be demonstrated using the formula for calculating the cost of trade discount as follows:
Cost of trade discount = {[1 + (discount rate / (1 - discount rate))]^(365/days after discount)} - 1 ................... (1)
We can now applying equation (1) as follows:
<u>For payment in 40 days </u>
Cost of trade credit (payment in 40 days)= {[1 + (0.02 / (1 - 0.02))]^(365/40)} - 1 = 0.202436246672765, or 20%
<u>For payment in 30 days </u>
Cost of trade credit (payment in 30 days) = {[1 + (0.02 / (1 - 0.02))]^(365/30)} - 1 = 0.278643315029666, or 28%
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<u>Conclusion</u>
Since the 20% calculated cost of trade credit for payment in 40 days is lower than 28% calculated cost of trade credit for payment in 30 days, the <u>correct option is A. True</u>. That is, the calculated cost of trade credit for a firm that buys on terms of 2/10, net 30, is lower (other things held constant) if the firm plans to pay in 40 days than in 30 days.
Answer:
Advertising Expense , Cost of Merchandise Sold , Merchandise Inventory, Sales,Supplies Expense are closed to income summary account. Revenues and expenses are closed to Income Summary.
Explanation:
Closing Entries
a. Accounts Payable: No it is not closed to income summary account.
b. Advertising Expense: Yes it is closed to income summary account.
c. Cost of Merchandise Sold: Yes it is closed to income summary account.
d. Dividends : No these are closed To Retained Earnings Accounts.
e. Merchandise Inventory : Yes it is closed to income summary account
f. Sales Yes it is closed to income summary account
g. Supplies: No prepaid supplies are an asset account and it is included balance sheet.
h. Supplies Expense: Yes it is closed to income summary account
i. Wages Payable: Not closed in the income summary account.
These are liabilities and included in the balance sheet.
The answer is discoidal cell
