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Kobotan [32]
2 years ago
8

As of December 31, the Stanford company has the following information. Use this information to answer questions 1 to 3. Cash $5,

000 Accounts Receivable 15,000 Inventory 40,000 Prepaid Insurance 3000 Fixed Assets 100,000 Accounts Payable 15,000 Notes Payable in 5 Months 12,500 Salary Payable 25,000 Notes Payable in 5 years 35,000 Owner’s Equity 98,000 2. What is the company's Current Ratio? Question 3 options: 2.5 1.75 2.1 1.2
Business
1 answer:
Georgia [21]2 years ago
7 0

Answer:

1.2

Explanation:

current ratio = current assets / current liabilities

  • current assets = cash ($5,000) + accounts receivable ($15,000) + inventory ($40,000) + prepaid insurance ($3,000) = $63,000
  • current liabilities = accounts payable ($15,000) + notes payable in 5 months ($12,500) + salaries payable ($25,000) = $52,500

current ratio = $63,000 / $52,500 = 1.2

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Management accounting is the process of measuring and analyzing financial and non-financial information that is relevant to the company.  This is an important part of the Controller’s function in an organization since the Controller directly reports to the chief financial officer. The report contains pieces of information which contributes in making strategic decisions to achieve the goal of the organization. 

6 0
2 years ago
In 2017 Wilkinson Company had net credit sales of $2250000. On January 1, 2017, Allowance for Doubtful Accounts had a credit bal
mamaluj [8]

Answer:

$114,000

Explanation:

Given that,

Net credit sales = $2,250,000

Opening allowance for Doubtful Accounts = $36,000

Uncollectible accounts receivable written off = $90,000

Firstly, we need to find the excess amount to be adjusted to allowance for Doubtful Accounts. It is calculated as follows:

= Uncollectible accounts receivable written off  - Opening allowance for Doubtful Accounts

= $90,000 - $36,000

= $54,000

Allowance amount:

= 10% of the balance in receivables

= 0.1 × $600,000

= $60,000

Therefore, the required adjustment to the Allowance for Doubtful Accounts at December 31, 2017 is determined by summing up the excess amount and  allowance amount.

= Excess amount to be adjusted to allowance for Doubtful Accounts + Allowance amount

= $54,000 + $60,000

= $114,000

4 0
2 years ago
Jeff jones earns $1,200 per week. he is married and claims four withholding allowances. the social security rate is 6.2% on $118
myrzilka [38]
<span>Answer: Gross Pay: $1200 Less Health Ins: (42.50) Taxable Pay: 1157.50 SS Tax: 71.77 (1157.50 *.062) Medicare Tax: 16.78 (1157.50 *.0145) FIT: 91.79 Net Pay: 977.17 FIT calcualted as follows: Taxable less allowances (1157.50 less (71.15*4) = 872.9 (872.9 * .15)-39.15 = 91.79</span>
4 0
2 years ago
If your friend Raheem asks you, “What type of account should I use to save for retirement,” what advice would you tell him? (Thi
ahrayia [7]

i don't have any friends named raheem

6 0
2 years ago
Mogul Company ships merchandise to Ski Outfit in a consignment arrangement. The arrangement specifies that Ski Outfit will attem
Bezzdna [24]

Answer:

$25,000

Explanation:

The value of inventory at the end of the end of the period will be equal to

Value of inventory = Cost of goods sent less the cost of goods already sold.

<em>Remember the arrangement  is that of agency, hence the goods are not deemed to be sold except the agent has been able to exchange them for revenue in a sales contract with his own buyers.</em>

Also the sales commission would be reported under a separated ledger which will be reported as part of the operating expenses.

Amount of inventory = $105,000 - $80,000

                                  = $25,000

7 0
2 years ago
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