Reference no: EM133100935
Question - AA Trading reported the following accounts during the year 2020:
Cash Sales - 700,000
Sales on Account - 300,000
Collections of Acc Rec - 100,000
Collections of Advances from Customers - 50,000
Cash Purchases - 400,000
Purchases on Account - 200,000
Merchandise Inventory, Dec. 31, 2020 - 100,000
Sales Expenses (80% paid) - 150,000
Cash Advances to Employees - 20,000
Bad Debts Expense - 5,000
Depreciation Expense - 10,000
Required - If AA uses accrual basis accounting, what would be its net income? Strictly show your solution.
|
Determine the cost per equivalent
: At the end of the accounting period, 490 sets of skis were estimated to be 60 percent complete. Determine the cost per equivalent
|
|
Which option is economically better for manufacturing firm
: A manufacturing firm purchased a heavy duty drilling machine. Which option is economically better for the manufacturing firm
|
|
What was ford change in book debt-equity ratio
: In early 2015, Ford Motor (F) had a book value of equity of $24.8 billion, What was Ford change in book debt-equity ratio
|
|
Compute the payback period for both projects
: The cost of capital for the project is 9 percent and the tax rate is 30 percent. Compute the payback period for both projects
|
|
What would be its net income
: AA Trading reported the following accounts during the year 2020: Cash Sales - 700,000. If AA uses accrual basis accounting, what would be its net income
|
|
What is the Net Working Capital for WOW
: What is the Net Working Capital for WOW both in 2020 and 2021. What type of current asset management strategy is the company pursuing
|
|
Prepare the relevant journal entries for the financial year
: OhMyBank approved the five years term loan on 4 July 2021, charging a borrowing cost of 3% per annum. Prepare relevant journal entries for the financial year
|
|
Company grows and expands
: As a company grows and expands, so can its brand offerings; however, not all brands are typically a success, especially over the long-term.
|
|
What is your estimate of the firm net income
: The S&H Construction Company expects to have total sales next year totaling $14,900,000. What is your estimate of the firm net income
|