CM
Collin Mireault
Answers (6)
CM
Answered
The UCC often creates contractual liability in situations where no contract would have resulted at common law.
On Jul 25, 2024
True
CM
Answered
Which of the following does not correctly describe an adjusting journal entry that debits rent expense and credits prepaid rent?
A) The entry increases expenses and decreases stockholders' equity.
B) The entry decreases net income and decreases assets.
C) The entry increases expenses and decreases current assets.
D) The entry decreases net income and decreases liabilities.
A) The entry increases expenses and decreases stockholders' equity.
B) The entry decreases net income and decreases assets.
C) The entry increases expenses and decreases current assets.
D) The entry decreases net income and decreases liabilities.
On Jul 23, 2024
D
CM
Answered
Exley's Farms has a debt-equity ratio of.75. The cost of equity is 15% and the after-tax cost of debt is 5.4%. What will the firm's cost of equity be if the debt-equity ratio is revised to.60?
A) 10.89%
B) 11.47%
C) 11.70%
D) 13.89%
E) 14.18%
A) 10.89%
B) 11.47%
C) 11.70%
D) 13.89%
E) 14.18%
On Jun 25, 2024
E
CM
Answered
Selected information taken from the accounting records of Rigor Company follows:
Net accounts receivable at December 31,2013$800,000 Net accounts receivable at December 31, 2014 $900,000 Accounts receivable turnover 7 to 1 Inventories at December 31,2013$1,000,000 Inventories at December 31,2014$1,200,000 Inventory turnover 3 to 1\begin{array}{lr}\text { Net accounts receivable at December } 31,2013 & \$ 800,000 \\\text { Net accounts receivable at December 31, 2014 } & \$ 900,000 \\\text { Accounts receivable turnover } & 7 \text { to } 1\\\text { Inventories at December } 31,2013 & \$ 1,000,000 \\\text { Inventories at December } 31,2014 & \$ 1,200,000 \\\text { Inventory turnover } & 3 \text { to }1\end{array} Net accounts receivable at December 31,2013 Net accounts receivable at December 31, 2014 Accounts receivable turnover Inventories at December 31,2013 Inventories at December 31,2014 Inventory turnover $800,000$900,0007 to 1$1,000,000$1,200,0003 to 1
Required:
a.What was Rigor's gross margin for 2014?
b.Suppose there are 360 business days in the year.What was the number of days' sales outstanding in average receivables and the number of days' sales outstanding in average inventories for 2014,respectively?
Net accounts receivable at December 31,2013$800,000 Net accounts receivable at December 31, 2014 $900,000 Accounts receivable turnover 7 to 1 Inventories at December 31,2013$1,000,000 Inventories at December 31,2014$1,200,000 Inventory turnover 3 to 1\begin{array}{lr}\text { Net accounts receivable at December } 31,2013 & \$ 800,000 \\\text { Net accounts receivable at December 31, 2014 } & \$ 900,000 \\\text { Accounts receivable turnover } & 7 \text { to } 1\\\text { Inventories at December } 31,2013 & \$ 1,000,000 \\\text { Inventories at December } 31,2014 & \$ 1,200,000 \\\text { Inventory turnover } & 3 \text { to }1\end{array} Net accounts receivable at December 31,2013 Net accounts receivable at December 31, 2014 Accounts receivable turnover Inventories at December 31,2013 Inventories at December 31,2014 Inventory turnover $800,000$900,0007 to 1$1,000,000$1,200,0003 to 1
Required:
a.What was Rigor's gross margin for 2014?
b.Suppose there are 360 business days in the year.What was the number of days' sales outstanding in average receivables and the number of days' sales outstanding in average inventories for 2014,respectively?
On Jun 23, 2024
a.)$2,650,000.b.)Days' sales in average receivables = 51.4 days;Days' sales in average inventories = 120 days.
Feedback:a.)Gross margin equals net sales minus cost of goods sold.Net sales can be found by using the accounts receivable turnover ratio:
Accounts receivable turnover = Net sales ÷ Average receivables
7.0 = Net sales ÷ (($800,000 + $900,000)÷ 2).Net sales = $5,950,000.
Cost of goods sold can be found by using the inventory turnover ratio:
Inventory turnover = Cost of goods sold ÷ Average inventory
3.0 = Cost of goods sold ÷ (($1,000,000 + $1,200,000)÷ 2).Cost of goods sold = $3,300,000.Gross margin = $5,950,000 - $3,300,000 = $2,650,000.b.)Days' sales in average receivables = 360 ÷ 7.0 = 51.4 days;Days' sales in average inventories = 360 ÷ 3.0 = 120 days.
Feedback:a.)Gross margin equals net sales minus cost of goods sold.Net sales can be found by using the accounts receivable turnover ratio:
Accounts receivable turnover = Net sales ÷ Average receivables
7.0 = Net sales ÷ (($800,000 + $900,000)÷ 2).Net sales = $5,950,000.
Cost of goods sold can be found by using the inventory turnover ratio:
Inventory turnover = Cost of goods sold ÷ Average inventory
3.0 = Cost of goods sold ÷ (($1,000,000 + $1,200,000)÷ 2).Cost of goods sold = $3,300,000.Gross margin = $5,950,000 - $3,300,000 = $2,650,000.b.)Days' sales in average receivables = 360 ÷ 7.0 = 51.4 days;Days' sales in average inventories = 360 ÷ 3.0 = 120 days.
CM
Answered
Generally accepted accounting principles do not normally allow the use of the direct write-off method of accounting for uncollectible accounts.
On May 26, 2024
True
CM
Answered
The manufacturing overhead budget at Foshay Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 7,200 direct labor-hours will be required in May. The variable overhead rate is $7.70 per direct labor-hour. The company's budgeted fixed manufacturing overhead is $139,680 per month, which includes depreciation of $24,850. All other fixed manufacturing overhead costs represent current cash flows. The company recomputes its predetermined overhead rate every month. The predetermined overhead rate for May should be:
A) $7.70
B) $27.10
C) $23.60
D) $19.40
A) $7.70
B) $27.10
C) $23.60
D) $19.40
On May 24, 2024
B