Answer:
B. 9.0 times.
Explanation:
Accounts Receivable Turnover (ART) = Net credit sales/ Average accounts receivable
Net credit sales = <em>$7,200,000</em>
Average accounts receivable = (beginning AR - ending AR) /2
Average Accounts receivable = ($820,000 + $780,000)/2
Average AR = <em>$800,000</em>
Therefore Accounts receivable turnover = $7,200,000/800,000 = 9.0 times
Answer:
See below
Explanation:
Statement of cash flow for ATM SOFTWARE
• The figures seems to be in thousands already.
Cash flow from operating activities
Net income
$11,800
Increase in Account receivable
($4,030)
Decrease in Account payable
($1,730)
Depreciation expense
$5,435
Decrease in inventory
$1,445
Decrease in prepaid rent
$875
Net cash flow from operating activities
$13,795
Cash flow from investing activities
Sale of land
$8,590
Purchase of equipment
($39,715 )
Net cash flow from financing activities
($31,125)
Cash flow from financing activities
Issuance of stock
$12,925
Long term note payable
$16,345
Purchase of treasury stock
($2,585 )
Payments of dividends
($6,310)
Net cash flow from financing activities
$20,375
Net increase in cash
$1,725
Cash at the beginning
$8,215
Cash at the end
$9,940
Answer:
$29,500
Explanation:
Given that,
Beginning inventory = $12,000
Ending inventory = $6,000
Purchases = $25,000
Purchase return = $1,500
Kuyu’s cost of goods sold during the period:
= Beginning inventory + Net purchases - Ending inventory
= Beginning inventory + (Purchases - Purchase return) - Ending inventory
= $12,000 + ($25,000 - $1,500) - $6,000
= $12,000 + 23,500 - $6,000
= $29,500
Answer:
$8 per direct labor hours and $2 per direct labor hours
Explanation:
The computation of the predetermined overhead rate is shown below:
Predetermined overhead rate = Budgeted fixed manufacturing overhead ÷ planned activity level
= $480,000 ÷ 60,000 direct labor hours
= $8 per direct labor hours
And, the budgeted variable manufacturing overhead is $2 per direct labor hours
We simply divide the budgeted fixed manufacturing overhead by the planned activity level
Answer:
Explanation:
As we know that time interest earned ratio = Income before interest and taxes / interest expense.
Sales = 546000
less: cost of goods sold = (<u>244410</u>)
Gross profit 301590
Less: <u>expenses</u>
Depreciation expense =( <u>61900 </u>)
Profit before interest and taxes 239690
Less: tax
(239690 * 23%) = (<u>55128</u>)
Profit 184562
Profit - Retained earning Addition = Interest
184562 - 74300 = 110262.
Interest earned ratio = 239690 / 110262 = 2.17 times
