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- 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?Pinecone Company has plan assets of 500,000 at the beginning of the current year and expects to earn 12% on its plan assets during the year. Pinecones service cost is 230,000, and its interest cost is 55,000. Compute Pine-cones pension expense for the current year.Total assets of JBA Engineering and Design Firm is $1,000,000. 20% represents the claim of the owner. What is its liability?
- Excess Construction Corp. has a $16 million contract to construct a building. The company estimates $10.4 million in costs to construct the building and an expected gross profit of $5.6 million. During the current year, the company incurred $3,120,000 of costs on the contract. Under the percentage-of-completion method, how much will Excess Construction Corp. report as revenue in the current year?Bonner Automotive has shareholders' equity of $218,700. The firm owes a total of $141,000 of which 40 percent is payable within the next year. The firm has net fixed assets of $209,800. What is the amount of the net working capital?37. A company with $60,000 in current assets and $35.000 in current liabilities pays a $1,000 current liability. As a result of this transaction, the current ratio and working capital will A) remain the same and decrease, respectively. B) both decrease. ) increase and remain the same, respectively. D) both increase.
- Bay Plumbing's balance sheet shows operating current assets of $6,300. Its current liabilities consist of $810 of accounts payable, $800 of 8% short-term interest-bearing notes, and $3,200 of accrued wages. What is its net operating working capital?A construction company entered into a fixed-price contract to build an office building for $20 million. Construction costs incurred during the first year were $6 million and estimated costs to complete at the end of the year were $9 million. The company recognizes revenue over time according to percentage of completion. How much revenue and gross profit or loss will appear in the company’s income statement in the first year of the contract?SALLAT Household Furnishings & Appliances is a family-owned business. You are the management accountant of the entity and have been given the task of preparing the cash budget for the business for the quarter ending September 30, 2022. Your data collection has yielded the following: i) Extracts from the sales and purchases budgets are as follows: Cash Sales Cash Purchases Month Sales On Account Purchases On Account May June $75,000 $135,000 $480,000 $600,000 $390,000 $360,000 July August | September $86,800 $105,600 $112,500 $36,000 $61,700 $68,800 $77,250 $720,000 $640,000 $800,000 $450,000 $400,000 $500,000 ii) An analysis of the records shows that trade receivables (accounts receivable) for sales on account are settled according to the following credit pattern, in accordance with the credit terms 5/30, n90: 50% in the month of sale 35% in the first month following the sale 15% in the second month following the sale Accounts Payable are settled as follows, in accordance with the…
- ix) Wages and salaries are expected to be $2,304,000 per annum and will be paid monthly.x) In the month of August, furniture & fixtures, which cost $455,000, will be sold to anemployee at a loss of $20,000. Accumulated depreciation on the furniture & fixtures at thattime is expected to be $305,000. The employee will be allowed to pay a deposit equal to60% of the selling price in August with the balance settled in two equal amounts inSeptember & October.xi) As part of its investing activities, the management of Sallat Household Furnishings &Appliances is in the process of completing a major addition to the business property, whichis estimated to cost $1,200,000, and which is being funded by external borrowing. $420,000of the principal, along with interest of $14,200 is due to be paid on July 15, 2022.xii) The cash balance on September 30, 2022, is expected to be an overdraft of $147,500.A construction company entered into a fixed-price contract to build an office building for $48 million. Construction costs incurred during the first year were $18 million, and estimated costs to complete at the end of the year were $27 million. The company recognizes revenue over time according to percentage of completion. How much revenue and gross profit or loss will appear in the company’s income statement in the first year of the contract? Note: Enter your answers in whole dollars and not in millions (i.e., $4 million should be entered as $4,000,000).A construction company entered into a fixed-price contract to build an office building for $42 million. Construction costs incurred during the first year were $12 million, and estimated costs to complete at the end of the year were $28 million. The company recognizes revenue over time according to percentage of completion. How much revenue and gross profit or loss will appear in the company's income statement in the first year of the contract? Note: Enter your answers in whole dollars and not in millions (i.e., $4 million should be entered as $4,000,000). Revenue