Should calvin use the accrual method or the cash method

Assignment Help Finance Basics
Reference no: EM13273888

Calvin opened his dental practice (a sole proprietorship) in May 2010. At the end of the year, he has unpaid accounts receivable of $36,000 and no unpaid accounts payable. Should Calvin use the accrual method or the cash method for his dental practice?

Reference no: EM13273888

Questions Cloud

Find the intensity of the sun : The power of lightbulb is 100 Watts. I found the intensity of lightbulb which is about 812 Watt/m^2. Using these information, find the intensity of the Sun
Define what is the net ionic equation for formation : List the predominant species in Fe(NH4)2(SO4)2 6H2O solution. What is the net ionic equation for formation of iron (II) oxalate via the reaction of potassium oxalate and Fe(NH4)2(SO4)2 6H2O
What will be the final temperature of the gas : If you supply 1950J of heat to 3.00moles of an ideal diatomic gas initially at 27.0 Celsius in a perfectly rigid container
State and balance net ionic equation for oxalic acid : Write and balance net ionic equation for oxalic acid reacting with permanganate ion in acidic solution.
Should calvin use the accrual method or the cash method : Calvin opened his dental practice (a sole proprietorship) in May 2010. At the end of the year, he has unpaid accounts receivable of $36,000 and no unpaid accounts payable. Should Calvin use the accrual method or the cash method for his dental prac..
What is peterson ebitda coverage ratio : It has $0.6 billion in lease payments and $0.3 billion must go towards principal payments on outstanding loans and long-term debt. What is Peterson's EBITDA coverage ratio?
What is the current density in the electron beam : The electron beam inside a television picture tube is 0.300mm in diameter and carries a current of 55.0 uA. What is the current density in the electron beam
What is the equivalent annual annuity for each plane : By how much would the value of the company increase if it accepted the better project (plane)?Enter your answer in million.
What portion of total payments made during the fourth year : You recently obtained a $135,000, 30-year mortgage with a nominal interest rate of 7.25%. Assume that payments are made a the end of each month. what portion of the total payments made during the fourth year will go towards the repayment of princi..

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute the degree of operating leverage

Moe & Chris' Delicious Burgers, Corporation., sells food to University Cafeterias for $15 a box. The fixed costs of this operation are $80,000, and variable cost per box is $10.

  Capital structure and break even ebit

An all equity plan (PLAN 1) and a levered plan (PLAN 2). Under plan 1 the company would have 200,000 shares of stock outstanding. What is the break even EBIT?

  What is the firm yr 1 incremental after-tax cash flow

Let's say a firm with a 34% marginal tax rate considers an investment that is expected to reduce the cost of labor from $10,000 to $9,000 in Year One. What is the firm's Yr 1 incremental after-tax cash flow from this reduction in labor costs?

  Employee retirement income security act of 1974

The Employee Retirement Income Security Act of 1974 (ERISA) established which of the following..

  Long term planning for making and financing investments

Long-term considering for making and financing investments that affect financial results for more than the current year is called, If the appropriate tax rate is 30 percent, the after-tax effect of an $100,000 savings in labor expense is:

  What is the present value of the second option

You can have $8,500 per month for the next three years, or you can have $7,200 per month for the next three years, along with a $38,500 signing bonus today. Assume the interest rate is 8 percent compounded monthly.

  Computation of net present value with given data

Computation of net present value with given data and What is its net present value

  Find the risky stock

Common stock A has an expected return of 10 percent, a standard deviation of future returns of 25 percent, and a beta of 1.25. Common stock B has an expected return of 12 percent,

  Calculate for alice the total cash value of the annuity

Alice Longtree has decided to invest $400 quarterly for 4 years in an ordinary annuity at 8%. As her financial adviser, calculate for Alice the total cash value of the annuity at the end of year 4.

  Compute the net present value of the investment

An investment of $15,000 is expected to return $8,000 at the end of 5 months and 10 months.

  Determine value of the preferred share

A company issued a preferred stock which matures in thirty years and carries a maturity value of $45. The dividend is $4 per year over the 30 year period.

  Computation of lease option vs. buy option using time value

Computation of lease option vs. buy option using time value of money and Compute the after tax cost of the borrow-purchase alternative

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd