Crocodiles have been sold and delivered

Assignment Help Financial Accounting

Reference no: EM131286811

During its first year, the company spent approximately $300,000 to catch 500 crocodiles. Of these, 300 crocodiles were sold and shipped to customers at a selling price of $1,000 per crocodile. Shipping costs of $50 per crocodile were paid for during the year. Customers were given liberal credit terms and only $160,000 from an equivalent 200 customers was collected during the first year. Ms. La Femme estimated that as much as 20% of the sales price will be spent in collection costs and bad debts expenses.

Prepare three income statements for the year assuming that revenue is to be recognized when:

a. Crocodiles have been caught (i.e. production complete).

b. Crocodiles have been sold and delivered

c. Cash collections are complete

Reference no: EM131286811

Questions Cloud

Summarize the age discrimination in employment act : IDENTIFY and SUMMARIZE the Age Discrimination in Employment Act (ADEA).DISCUSS why you think that employers would discriminate in hiring those over the age of forty years old.

Components of deming profound knowledge : Failure to understand the components of Deming's profound knowledge can create some severe problems. Answer the following three questions to relating Peter Scholtes's observations about the failure to understand Deming's profound knowledge.

In contribution margin analysis : In contribution margin analysis, the unit price or unit cost factor is computed as:

Which of the internationalization theories is best : Which of the internationalization theories is best for explaining the Adidas acquisition of Reebok?- What could be the motives behind Adidas' acquisition of Reebok?

Crocodiles have been sold and delivered : During its first year, the company spent approximately $300,000 to catch 500 crocodiles. Of these, 300 crocodiles were sold and shipped to customers at a selling price of $1,000 per crocodile. Shipping costs of $50 per crocodile were paid for during ..

Write a summary of the civil war from 70s till 90s : Write a Summary of the civil war from 70s till 90s.

Describe two examples from the article of political leaders : Cite and describe two examples from the article of political leaders making comments that could be seen as attempting to bring political pressure to bear on their respective country's central bank.

Establish long-term goals and objectives : Write a 1,050-word report on the company you selected in Week 3, following up on the Individual Assignment of Week 3 (Environmental Scanning), and address the following:

Why internationalization is an ongoing process : Explain why internationalization is an ongoing process in constant need of evaluation.- What is meant by the concept of ‘psychological' or ‘psychic distance'?

User Account

All Pages