Which of the following is correct with regards to cash discounts offering? * Investment in accounts receivable will likely grow since more customers will pay on a later date O Bad debts expense will probably decrease since customers more likely take the advantage of discounts O It is used lengthen the cash conversion cycle without putting pressure the clients O These are granted because customer acquires high quantity of products and goods
Q: The Gourmand Cooking School runs short cooking courses at Its small campus. Management has identifie...
A: The revenue and spending variance is calculated as variance between actual results and flexible budg...
Q: ABC Corporation declared 25% bonus issue to its ordinary shareholders on December 31,2021. As
A: Bonus Shares : Bonus shares means additional shares which are given to existing shareholders without...
Q: Please explain how interest expense changes on the adjusted trial balance and show work out of the a...
A: Adjusted Trial Balance Adjusted Trial balance which has to incurred to make the adjustment entries f...
Q: In the context of choosing a share repurchase over declaring dividends, a share repurchase would * ...
A: Share repurchase means buying back of the shares by the company. It is also referred to as treasury ...
Q: 1 On December 31, 2021, what total amount should be reported as current iabilities? 14% Notes payabl...
A: Current liability is an obligation that is payable within one year.
Q: (a) Complete the aging schedule. Number of Days Accounts Estimated % Total Estimated Outstanding Rec...
A: Formula:- Total estimated uncollected Accounts = Account Receivable × Estimated % uncollectible.
Q: The following financial information is available for Sheridan Ltd. as at December 31 (in thousands, ...
A: Profit available to common stock holders= Profit- Preference dividend EPS= Profit available to commo...
Q: 3. Given: Your boss has asked you to investigate purchasing new machines for a processing line. The ...
A: Given as, Demand= 225, 000 units/year, i= 8.0 %.
Q: E17-13. Please solve part d, and show all workings clearly. FYI: The securities-held to maturities...
A: Unrealized Holding Gain- An unrealized holding gain is enhancing in the value of an asset that a com...
Q: During the next four months, a furniture manufacturer will be entering its holiday season. Managemen...
A: The annual percentage rate seems to be the cost of credit, expressed as a percentage, over a year. T...
Q: During 2021, Montoya (age 15) received $2,300 from a corporate bond. He also received $900 interest ...
A: Taxable income refers to the income on which tax is imposed by the relevant authorities. It includes...
Q: 2022, Draper Company discovered errors made in 2019-2021, its first thre years of operation 2021 202...
A: Calculations of Restated 2021 Net Income. Hence, Restated 2021 Net Income is $23,350. Working Not...
Q: Prince Corporation holds 75 percent of the common stock of Sword Distributors Inc., purchased on Dec...
A: Journal entry refer to recording of transactions into the day book of the company and it is vital st...
Q: Community Apartments Inc. (CA Inc.) is building a luxury condominium for a contract price of $68,000...
A: The correct answer is given in the following steps for your reference.
Q: At March 31, 2019, the end of the first year of operations at Lukancic Inc., the firm’s accountant n...
A: When liability is created we credit liability account and debit the expense account
Q: Preferred stocks are characterized by all the following, except voting rights are generally not pres...
A: Preferred stocks are components of share capital. Preferred stocks have preferential rights of divid...
Q: all employee contributions with employer contributions on a two-to-one basis. That is if an employee...
A: Given as, Monthly expense, after 25 yrs – 9000 Yearly withdrawal after 26 yrs – 35000 Effective retu...
Q: Which of the following choices best describes reasonable conclusions that you might make about the t...
A: Current ratio = Current assets / Current liabilities Current ratio of A = 40,000/10,000 = 4 Current ...
Q: Drexler incurred P234,000 of experimental and development costs in its laboratory to develop a paten...
A: The amortization expense is charged on intangible assets such as patent, goodwill, etc.
Q: Sinovac Corporation, a 75% own subsidiary of Pfizer Corporation sells inventory to its parent at 150...
A: Solution Determine the realised and unrealised profits- Downstream P: (sellers) (s buyer) Cost on...
Q: X Company Y Company Amount Percent Amount Percent Sales $ 148,000 100.00 $ 148,000 100.00 Variable c...
A: Break even sales = Fixed costContribution margin ratio = $70,20070% = $100,286
Q: [S1] The dividend decision generally involves the same factors as the earnings retention decision. [...
A: Dividend decision is an important and crucial decision for an organisation. It effects shareholders ...
Q: 000. The yield to matu = first coupon and sell urity of this bond decre
A: Given as, The Price of a Bond in 2021 is $100,000.
Q: On January 1, year 1, ABC Corporation purchased 80% of XYZ Corporation's P10 par common stock for P9...
A: CALCULATION OF GOODWILL AS ON DATE OF ACQUISITION PARTICULARS AMOUNT (In Php) PURCHASE CON...
Q: Bulldogs Inc. sells on term 3/20, net 40. Total sale for the year are P1,200,000 on which 40% is cas...
A: Average amount of account Receivable = Days of sales outstanding x Sales / 360 Days of Sales Outstan...
Q: Question 4 of 4 -/2 View Policies Current Attempt in Progress Maple Leaf Foods Inc. reported the fol...
A: Solution.. Net Accounts receivable = Gross accounts receivable - allowance for Doubtful Account...
Q: tems 15 to 17 are based on the following information: You are engaged to perform an audit of the acc...
A: Sales- The revenue created by a company through selling its goods and services to clients is referre...
Q: ($) ('$) Unit Total Balance Cost in Units 50 Date Explanation Units Cost Jun-01Beginning inventory 5...
A: FIFO: COGS = 50 units x $1 + 10 units x $1.2 + 40 units x $1.2 + 110 units x $1.4 = $50 + $12 + $48 ...
Q: Crane Electric sold $6,240,000, 10%, 10-year bonds on January 1, 2022. The bonds were dated January ...
A: Solution: When bonds are redeemed before maturity date, difference between carrying value and redemp...
Q: Ron Marden and Tip Baker operate separate auto repair shops. On January 1, 2020, they decide to comb...
A: Formation of Partnership Firm: It is important to understand that a partnership business is not a di...
Q: The stock of Payout Corp. will go ex-dividend tomorrow. The dividend will be $1 per share, and there...
A: Dividend is the amount of return on the shares of an entity.
Q: Parent Company acquires Subsidiary Company on September 1, 2020. Parent seeks an independent valuati...
A: The correct answer for the above mentioned question is given in the following steps for your referen...
Q: Dow Deep Mining Co acquired mineral rights for $56,000,000. The mineral deposit is estimated at 70,0...
A: Given that cost of the mineral rights = $56,000,000 Estimated mineral deposit = 70,000,000 tons
Q: Panamint Systems Corporation is estimating activity costs associated with producing disk drives, tap...
A: Activity rate for the material handling cost pool = Total material handling costs / Total no. of mov...
Q: The following data relate to a piece of equipment owned by Mr. Queen Company: Acquisition date – Ju...
A:
Q: Barbara's Boards sells a snowboard, Xpert, that is popular with snowboard enthusiasts. Information r...
A: Moving average cost can be calculated by cost of goods available for sale divided by units of invent...
Q: Dell Company is selling sounds and lights equipment. The company’s fiscal year ends on March 31. The...
A: Warranty is a contract between the seller and buyer of the product. Under the warranty contract, the...
Q: Which is false about long-term sources of a firm's capital? * , O All types of corporations may issu...
A: Who can issue equity securities to public:- Only large publicly-held corporation can issue equity se...
Q: What should be reported as total shareholders’ equity on December 31, 2020?
A: Total Shareholders' equity computation includes: a) Outstanding shares b) additional paid up capita...
Q: During the current year, Mute Corporation expected to sell 22,200 telephone switches. Fixed costs fo...
A: Contribution per unit = Selling price per unit - Variable cost per unit = $3,100 - $1,280 = $1,820 P...
Q: During the past year, the company introduced several new product lines and raised the selling prices...
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-part...
Q: Prosperity Company holds 40% of the voting rights of MNO Co. The remaining shares was held by thousa...
A: Protective right is the right which protect the interest of party who holds that right but does not ...
Q: Bulldogs Inc. deals with various clients throughout the city and is attempting to collect its accoun...
A: Total receipts=Daily receipts×Average amount=300×P5,000=P1,500,000
Q: percent. The tax
A: The formula is shown as,
Q: Catalina Corporation begins the year with a $195 balance in Retained Earnings and a $320 balance in ...
A: Stockholders' equity represents the amount of funds remaining with the entity after payment of all t...
Q: Bulldogs Inc. currently fills mail orders from all over the country and receipts were received in it...
A: Introduction:- The following basic information as follows under:- Particulars Amount Average ac...
Q: Compute the unrealized gains or losses. Unrealized 2$ Prepare the adjusting entry for Larkspur on De...
A: Solution:- Given, Larkspur Company has the securities in its investment portfolio on December 31, 20...
Q: 8. Using an annual interest rate of 9%, how long will it take a deposit of $1,500 to grow to $3,000,...
A: Deposit amount (PV) = $1500 Future value (FV) = $3000 Interest rate (r) = 9%
Q: On January 1, 2021, Parent Co. acquired 80% of Subsidiary Inc.’s outstanding stocks for P1,600,000 c...
A: A consolidated balance sheet is a financial statement that reflects the financial status of a parent...
Q: er 30, 2022, AA decides to retire from the partnership. Net income of the partnership from January 1...
A: ln case of partnership there is agreement between two or more partner to share profit and losses in ...
7
Step by step
Solved in 2 steps
- A. What is the incremental cash flows from switching credit policies? B. What is the cost of switching? C. What is your recommendation? D. What is the break-even sales increase? Interpret.Which of the following best represents a positive product of a lower number of days sales in receivables ratio? A. collection of receivables is quick, and cash can be used for other business expenditures B. collection of receivables is slow, keeping cash secured to receivables C. credit extension is lenient D. the lender only lends to the top 10% of potential creditorsA decrease in the costs of using an ATM causes money demand to increase. Shifting the Money demand curve to the right.Group of answer choices A. The first statement is false. The second statement is true. B. The first and second statements are both false. C. The first statement is true. The second statement is false. D. The first and second statements are both true.
- In the case of decrease the operating cash cycle, which one of the following actions should be taken? A Delay payments to suppliers B Increase the inventory level while maintaining constant salesC Increase the period of time for which credit is granted to customers D Decrease the rate at which the average inventory is soldCash conversion cycle can be reduced by reducing the payables deferral period which will slow down the payment to suppliers. Is it True or False?I am currently working on a study guide and came across the following question. Which of the following statements correctly reflects the effects of granting credit to customers? a) total revenues may increase if both the quantity sold and the price per unit increase when credit is granted b) a firm's cash cycle generally increases if credit is granted, all else equal c) both the cost of default and the cost of discounts must be considered before granting credit d) a firm may have to increase its borrowing if it decides to grant credit to its new customers e) all of the above My professor stated that the answer is all of the above, but after going through the readings and resources provided I could not find a way to understand how each answer is considered to be correct. I also e-mailed my professor and am waiting for a response, so I decided to post my question here as well.
- How will a firm's cash cycle be affected if one of the firm's suppliers that was only accepting cash payment before, now offers a trade credit to the firm, all else being equal (select the best choice below)? 1. If one of the firm's suppliers that was only accepting cash payment before, now offers a trade credit to the firm, its accounts payable days will increase. All else equal, this will cause the cash cycle of the firm to decrease. II. If one of the firm's suppliers that was only accepting cash payment before, now offers a trade credit to the firm, its accounts receivable days will increase. All else equal, this will cause the cash cycle of the firm to increase. III. If one of the firm's suppliers that was only accepting cash payment before, now offers a trade credit to the firm, its accounts payable days will decrease. All else equal, this will cause the cash cycle of the firm to decrease. IV. If one of the firm's suppliers that was only accepting cash payment before, now offers a…Comment on the company that has a longer Cash Conversion Cycle. Do they need to improve cycle? Give your insights.Making changes to a firm’s credit policy involves trade-offs. Assuming that all other factors remain constant, which of the following are outcomes expected to result from an increase in a firm’s cash discount? Check all that apply. An increase in the cost of the discounts given An increase in the firm’s bad-debt expenses An increase in the firm’s credit sales, a speeding up of customer payments, and a reduction in the firm’s receivables investment An increase in the creditworthiness of the firm’s customers
- What is the ultimate objective of financial management? Question 7 options: to ensure the ROA is higher than ROR to obtain a higher ROR than ROA to ensure that ROA is higher than the cost of financing to collect trade receivables faster than the payment of trade and other payablesThe goal of credit policy is to Maximise sales Minimise bad debt losses Minimise collection expenses Extend credit to the point where marginal profits equal marginal costs3 Why might smaller companies prefer to use techniques such as cash payback and accounting rate of return over discounted cash flow techniques? This is to be posted on Discussion Forum, So please write it in you own words.