Answer:
The AC Corporation takes 46 Days average to pay back its accounts payable.
Explanation:
Average Accounts Payable = $7863.5
Cost of Goods Sold = $63,008
Number of Days in Accounting Period = 365
Days Payable Outstanding = (Average Accounts Payable / Cost of Goods Sold) x Number of Days in Accounting Period
Days Payable Outstanding = ($7,863.5 / $63,008) x 365
Days Payable Outstanding = 45.55
Therefor, the company takes an average of 46 days to pay back its accounts payable.
Answer:
$7,000 $-0-
Explanation:
For Rayburn to know what to record from the cash distribution, he will need to subtract his basis in the stock from the cash distribution he receives
Therefore $22 000 - $15 000 = $7 000.
And Newcastle has no income =$-0-
Answer:
$6.00 per machine-hour
Explanation:
Total estimated manufacturing overhead = $300,000
Estimated machine hours = 50,000 hours
Predetermined overhead rate = Total estimated manufacturing overhead / Estimated machine hours
Predetermined overhead rate = $300,000 / 50,000 machine hours
Predetermined overhead rate = $6 per machine hour
So, The correct asnwer is $6.00 per machine-hour.
Answer:
a. $522 repayment of a loan from an employee. Firm B loaned $500 to the employee six months ago, and the employee repaid the loan with interest.
-
Firm B should recognize $22 as interest income.
b. $600 deposit from a customer who rented mechanical equipment. Firm B must return the entire deposit when the customer returns the undamaged equipment.
-
The deposit cannot be recognized as income since it is a liability.
c. $10,000 short-term loan from a local bank. Firm B gave the bank a written note to repay the loan in one year at 9 percent interest.
-
Interests ($900) will be recognized when they are actually paid for in 1 year. No accrued interests must be reported on the balance sheet (December 31).
d. $888 prepaid rent from the customer described in part b. The rent is $12 per day for the 74-day period from December 17 through February 28.
- The $888 will be recognized as revenue during the current year.
Explanation:
When a taxpayer is a cash basis taxpayer, it will only report income and expenses that are actually collected or paid for respectively. All accounts receivable or accounts payable are not considered revenues nor expenses.
Answer: $2
Explanation:
The Supply curve S1 represents the supply before tax. The equilibrium price at this point is therefore $3.
With taxes, the supply curve is S2 and the equilibrium price has now gone up to $5.
The amount that XYZ will be left with after paying the tax is:
= Price after tax - price before tax
= 5 - 3
= $2
