Answer:
A. 56.32 days
B. 40.38 days
Explanation:
The Operating cycle is the Inventory period + AR period
Inventory period= 365/(Cost of goods sold/Average inventory)
Average inventory= (Beginning Inventory + Ending Inventory)/2
Accounts Receivable period= 365/(Credit Sales/Average Accounts Receivable )
Average Accounts Receivable= (Beginning Accounts Receivable + Ending Inventory Accounts Receivable)/2
Calculated Inventory period= 42.58 days
Calculated Accounts Receivable period= 13.74 days
The Cash cycle is also called the Net Operating cycle which is the Inventory period + Accounts Receivable period- Accounts Payable period
Accounts Payable period= 365/(Cost of goods sold/Average Accounts Payable)
Average Accounts Payable = (Beginning Accounts Payables + Ending Inventory Accounts Payable)/2
Calculated Accounts Payable period= 15.94 days
Answer:
Single step income statement
Explanation:
The single step income statement is the simplest form in which an income statement is prepared, e.g.
Revenues:
- Sales revenues $100
- Interest income $20 $120
Expenses:
- Rent expense $30
- Utilities expense $10
- Wages and salaries $60 <u>($100)</u>
Income before taxes $20
Tax expenses <u> ($4.20)</u>
Net income $15.80
A multi-step income statement is more complex, since operating revenues and costs are reported first in order to determine operating income, then other revenues and expenses are introduced and income before taxes is calculated.
O A. It removes debts that a person or business cannot repay.
Answer:
Salaries and Wages are owed so they are now liabilities. They are also expenses and will reduce the Net Income.
Rent Revenue was in advance for 2 months meaning one of those months will be December which is in the current period so;
= 7,520/2
= $3,760 will be added to net income for the year
The same amount will be removed from Liabilities as the revenue has now been recognized.
Depreciation reduces the value of Fixed assets so will be deducted from Assets.
It is also an expense so it will reduce Net Income.
Whatever happens to Net Income will happen to Stockholders' equity as well because Net Income is an Equity account.
The global leadership that is being used in the scenario
above is participative. This is where the individuals involved or associated in
a particular activity are all involved with the activity or that they have
contributed to the activity that is being conducted in means of participating
in the group work.