A company with working capital of $500,000 and a current ratio of 2:1 pays a $100,000 short-term liability. The amount of working capital immediately after payment is? The current ratio immediately after the payment is?

Q: The company has a 10% interest bearing, promissory note of 50,000, payable after 5 years. Sales…

A: The financial leverage is the ratio that helps in measuring the dependency of the entity on debt…

Q: nsider the operations of a manufacturing company that operates 340 days a year. On entory. All its…

A: Given information : Operational time = 340 days Average time for selling = 55 days Mark up = 12%…

Q: 0. Jimin Corp. is preparing the interim financial statements for the quarter ended March 31, 2022.…

A: Financial statement means the statement including income statement , balance sheet , cash flow…

Q: Amal Perfume company books of account showed that the capital employed on 1-1-2020 was OMR 150,000…

A: Total profit for 5 years = Profit for year 1 + profit for year 2 + profit for year 3 + profit for…

Q: At the end of 2020, ABC Company had the following balances: $300,000 was paid for the sold…

A: Net income = Revenue - Expenses

Q: Casey Motors recently reported the following information:   Net income = $750,000. Tax rate = 25%.…

A: The objective of the question is to calculate the Economic Value Added (EVA) for Casey Motors. EVA…

Q: n 2019, Deepika Company has sales of $800,000, variable costs of $200,000, fixed costs of $300,000.…

A: Solution  Given Sales $800000 Variable cost 200000 Fixed cost 300000 Annual…

Q: In 300 words describe what the one-year principle is?

A: Since you have posted multiple questions, we will be solving the first question as per our…

Q: Assume Avaya contracted to provide a customer with Internet infrastructure for $2,050,000. The…

A: As per the honor code of Bartleby we are bound to give the answer of first three sub parts only,…

Q: For the current year, Clark Company has the following information. Beginning plan assets was $1,000,…

A: Defined Pension Obligation Defined pension obligation which is described as implemented scheme to…

Q: A firm has $26000 in an account in order to finance a $32000 expenditure in 2 years.  What minimum…

A: Current Value is $26000 Future Value of expenditure is $32000 Time period is 2 years To Find: APR,…

Q: The total income for the year ended 31 August 2020 for Amina Trading was RM65,500 and the total…

A: Net profit is determined after deducting the operating expense from the total income and it include…

Q: What is the current ratio if a company's short-term asset balance is $367,597 and short-term…

A: Current assets = $367,597Current liabilites = $25,500Current ratio = ?This is one of the asset…

Q: In order to finance a new project, a company borrowed $4,000,000 at 8% per year with the stipulation…

A: a) Calculation of cost of debt before taxes

Q: A company is comparing two investments. Both require an initial investment of $2,500. Investment A…

A: Initial investment = $ 2500 Investment A returns in eight years = $4,700  investment B returns in 12…

Q: Suppose a firm’s monthly account analysis statement shows a service charge of $10,000 and an…

A: The net amount of cash in a checking account is calculated as an earnings allowance, and the credit…

Q: Merle Company pays $1,000 for this month’s rent in cash. The effect to Assets would be: Merle…

A: Accounting equation is based on the double entry system which shows the effect of transactions on…

Q: Jay Oullette, CEO of Bumper to Bumper Inc., anticipates that his company's year-end balance sheet…

A: Working capital refers to a company's ability to manage day-to-day expenses and includes inventory,…

Q: What are the company's Liabilities here? O $447,600 O $96,000 O $306.000 O $264,600

A: Liabilities refers to the obligation on any individual or a company to pay the amount borrowed from…

Q: Assume a firm has a cash cycle of 54 days and an operating cycle of 77 days. What is its payables…

A: Operating cycle :— It is the sum of days in receivable and days in inventory.    Cash Cycle :— It is…

Q: average net profits expected in future by Khalifa and Co. are OMR 30,000 per year. The average…

A: 1) super profit method    = super profit* number of year purchased Super profit= (actual average…

Q: At an interest rate of 0.06 per year, the present worth of the maintenance cost is nearest to

A: Given PV=5000 Increasing =500 n=15 r=0.06 or 6%

Q: A company’s losses of a particular type are to a reasonable approximation normally distributed with…

A: We will use the normal distribution values in which the mean is zero and the standard deviation is…

Q: You are working as a finance manager for BCF Ltd. The following data is available for the company as…

A: Working capital management is a business strategy which ensures that company is using its current…

Q: Company has sales of $1.573,000 for the first quarter of 2022. In making the sales, the company…

A: CVP analysis is used to identify the changes in costs and volume affect a company's operating…

Q: a) If a trucking company invested $2,400 of its excess profits at 8% compound interest on December…

A: Future value is the value of money given in the present after a specified period of time in the…

Q: FDN Accounting Services purchased office supplies for P31,000 on terms 20% down payment and the…

A: The balance sheet represents the financial position of the business with assets and liabilities on a…

Q: NUBD Division reported a residual income of P200,000 for the year just ended.  The division had…

A: Answer -  Formula -  Residual Income = Operating Income - ( Capital Invested * Target Rate of…

Q: Southport Industries company has current assets of $600,000 and a current ratio is 4.00. Assume that…

A: Current assets are assets in the form of cash or can be converted into cash within a year.Current…

Q: Reliance fresh has planned operating expenses of ₹170,000, a profit goal of₹35,000, and it expects…

A: Working Note :-                           Calculation of Cost Of Goods Sold Particulars Budgeted…

Q: How much is the Gross Profit/Loss Realized in 2018?

A: A company has to recognize revenue and expenses in the year they are earned and incurred,…

Q: Aggarwal Inc. buys on terms of 2/10, net 30, and it always pays on the 30th day. The CFO calculates…

A: Costly trade credit = Purchases per day*(days credit outstanding- discount period)$350,000 =…

Q: A company with working capital of $810,000 and a current ratio of 2.5 pays a $132,000 short-term…

A: The working capital = current assets - current liabilities

Q: company with working capital of $720,000 and a current ratio of 2.2 pays a $125,000 short-term…

A: Working capital = current assets - current liability Current ratio = current assets /current…

Q: No use of excel  Lawson Company invests $60,000 today and has $148,560 by the end of eight years.…

A: PV(present value) is the amount invested today.

Q: towards Company was form accounting fees; P150,000 for legal fees; stock certification costs of…

A: Basic Accounting concept Capitalisation of expense Revenue nature expenses identification

Q: On January 1, 2021, the balance of Owner's Capital of FDN Company is P440,000. During the year the…

A: Owners capital balance indicates the total investment balance of the owner in the company. It can be…

Q: Consider the following worksheet with information extracted from a financial statement: 2020…

A: Estimated ending inventory using the gross profit method is determined by calculating the balancing…

Q: A firm has Common Stock of 1500000 and Total Stockholders' Equity of 5000000. Calculate the firm's…

A: Retained Earnings = Total Stockholder's Equity - Common Stock Net Working Capital = Current Assets -…

Q: 2. Ending owner s equity amounted to P70.000 Additional investments during the year amounted to…

A: Formula: Ending capital = Beginning capital +Additional investments +  Net income - withdrawals

Q: Furniture and Equipment (Net) Accounts Payable Accrued Expenses 80,000.00 252,000.00 26,000.00…

A: Total current assets = Cash + Notes Receivable + Accounts Receivable + inventories + prepaid…

Q: A company produces annual profits of ₡ 9,600,000.00 indefinitely, which is the value of the company…

A: Annual profit = ₡ 9,600,000.00  Monthly profit = ₡ 9,600,000.00 /12 =  ₡ 800,000 Monthly interest…

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.