• Q : What the accounts receivable turnover is....
    Accounting Basics :

    A company's January 1 balance in Accounts Receivable is $70,000. The December 31 balance is $80,000. If the company has credit sales of $600,000,what the accounts receivable turnover is :

  • Q : Incremental income-loss from accepting the order....
    Accounting Basics :

    A foreign company wants to purchase 1,000 units at a special unit price of $25. The normal price per unit is $40. In addition, a special stamping machine will have to be purchased for $2,000 in orde

  • Q : What the depreciation expense for the first year of assets....
    Accounting Basics :

    A firm purchases an asset for $50,000 and estimates that it will have a useful life of five years and a salvage value of $5,000. Under the double-declining-balance method, what the depreciation expe

  • Q : What will be the effect on net income....
    Accounting Basics :

    It costs Fortune Company $10 of variable and $4 of fixed costs to produce one bathroom scale, which normally sells for $28. A foreign wholesaler offers to purchase 1,000 scales at $12 each. Fortune

  • Q : What is the value of the ending inventory of 2,000 units....
    Accounting Basics :

    A firm that sells a single product had a beginning inventory of 4,000 units with a total cost of $16,000. Early in the year, 8,000 units were purchased at $6 each. Using LIFO, what is the value of t

  • Q : Acceptance of the offer have on net income....
    Accounting Basics :

    It costs Lannon Fields $14 of variable costs and $6 of allocated fixed costs to produce an industrial trash can that sells for $30. A buyer in Mexico offers to purchase 3,000 units at $18 each. Lann

  • Q : What is the value of the ending inventory....
    Accounting Basics :

    A firm that sells a single product had a beginning inventory of 4,000 units with a total cost of $28,000. Early in the year, 10,000 units were purchased at $9 each. Using FIFO, what is the value of

  • Q : How much is the relevant income effect....
    Accounting Basics :

    The company has a one-time opportunity to sell an additional 2,000 units at $55 each in an international market which would not affect its present sales. The company has sufficient capacity to produ

  • Q : What the insurance expense associated with this policy....
    Accounting Basics :

    On May 1, 20--, a firm purchased a 1-year insurance policy for $1,800 and paid the full premium in advance. what the insurance expense associated with this policy for 20-is

  • Q : Problem regarding receivables turnover ratio....
    Accounting Basics :

    Gold Clothing Store had a balance in the Accounts Receivable account of $820,000 at the beginning of the year and a balance of $880,000 at the end of the year. Net credit sales during the year amoun

  • Q : What was her net pay....
    Accounting Basics :

    Lisa Ramos has a regular hourly rate of $10.75. In a week when she worked 40 hours and had deductions of $55 for federal income tax, $26.75 for social security tax, and $6.25 for Medicare tax, what

  • Q : Average number of days in inventory....
    Accounting Basics :

    Waters Department Store had net credit sales of $16,000,000 and cost of goods sold of $12,000,000 for the year. The average inventory for the year amounted to $2,000,000. The average number of days

  • Q : Inventory turnover for the year....
    Accounting Basics :

    Waters Department Store had net credit sales of $16,000,000 and cost of goods sold of $12,000,000 for the year. The average inventory for the year amounted to $2,000,000. Inventory turnover for the

  • Q : Accounts receivable balances at the beginning....
    Accounting Basics :

    Parr Hardware Store had net credit sales of $6,500,000 and cost of goods sold of $5,000,000 for the year. The Accounts Receivable balances at the beginning and end of the year were $600,000 and $700

  • Q : Average collection period of the receivables....
    Accounting Basics :

    Walker Clothing Store had a balance in the Accounts Receivable account of $390,000 at the beginning of the year and a balance of $410,000 at the end of the year. Net credit sales during the year amo

  • Q : Beginning-ending merchandise inventories problem....
    Accounting Basics :

    Amanda's has a cost of goods sold of $1,900,000. The beginning and ending merchandise inventories are $133,000 and $125,000, respectively. Amanda's merchandise inventory turnover ratio is:

  • Q : What amount of income must be included....
    Accounting Basics :

    H and W are married taxpayers living in Louisiana. H earns wages of $40,000 and has $5,000 of dividend income from separate property. H and W have interest income from community property of $10,000.

  • Q : Merchandise inventory turnover ratio....
    Accounting Basics :

    Topiary's Unlimited has a cost of goods sold of $1,600,000. The beginning merchandise inventory was $195,000 and the ending merchandise inventory is $205,000. Topiary's merchandise inventory turnove

  • Q : Problem about ending accounts receivable balance....
    Accounting Basics :

    With a beginning accounts receivable balance of $80,000; an ending accounts receivable balance of $120,000; and net credit sales of $900,000, the accounts receivable turnover is:

  • Q : Accounts receivable turnover rate problem....
    Accounting Basics :

    Tammy Company has a beginning accounts receivable balance of $65,000 and an ending accounts receivable balance of $60,000. Net credit sales are $250,000. Tammy's accounts receivable turnover rate is

  • Q : Determining the return on total assets....
    Accounting Basics :

    Isaiah Company has net income of $720,000, beginning total assets of $2,100,000, and ending total assets of $2,300,000. Isaiah's return on total assets is:

  • Q : Ricks acid test or quick ratio....
    Accounting Basics :

    Rick's has a cash balance of $80,000; short-term investments of $20,000; net receivables of $60,000; and inventory of $450,000. Current liabilities total $200,000. Ricks' acid test (quick ratio) is

  • Q : Current ratio for a company with current assets....
    Accounting Basics :

    The current ratio for a company with current assets of $70,000, quick assets of $30,000, total assets of $150,000 current liabilities of $50,000 and net sales of $80,000 would be:

  • Q : Estimation of structural modification....
    Accounting Basics :

    With permission of the owner, Winn made structural modifications to the building before occupying the space at a cost of $180,000. The useful life of the building and the structural modifications we

  • Q : Pretax financial income or loss and taxable income....
    Accounting Basics :

    Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 45% tax rate for 2006 and 2007 and a 40% tax rate for the remaining years.

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