BUSINESS COLLEGE

USE THIS INFORMATION FOR THE NEXT THREE QUESTIONS. On Jan. 1st Sally buys a computer with her credit card for $500. This transaction posts to her credit card account on Jan. 3rd. On Jan. 31st, Sally's monthly credit card cycle closes (with this being the only purchase) and she receives her bill in the mail on Feb. 5th. She is required to pay her bill by Feb. 25th. She mails her $500 check on Feb. 23rd, it is received by the credit card company on Feb. 24th and the money is withdrawn from her account on Feb. 27th. What is Sally's "credit card float" on this transaction

Answers

Answer 1
Answer:

Answer:

Credit card float is the difference in time between the date of purchase and date when the payment is due.

Credit card Float = 54 days

Explanation:

The purchase date is the 1st January but the has only reflected on the credit card on the 3rd but date of purchase remains the 1st.

This is exactly like in depreciation 'available for use date' and 'date of use'

available for use is used to calculate depreciation, so we start on the purchase date.

on the date when payment is due

we have 25th of Feb and the 23rd of Feb the date of payment

we take 23rd the date of payment

just like in assets if  an asset has a useful life of 3 years and is sold in the two years the only depreciation or accumulated depreciation we reflect is for the years before it is sold.

Therefore the float period is between 1 jan and 23 feb = 54days
Answer 2
Answer:

Answer:

58 days

Explanation:

Related Questions

At the beginning of a year, a company predicts total direct materials costs of $1,010,000 and total overhead costs of $1,270,000. If the company uses direct materials costs as its activity base to allocate overhead, what is the predetermined overhead rate it should use during the year?
Which of the following measures the percentage change in earnings before interest and tax(or operating cash flow) associated with a given percentage change in sales? A) Degree of financial leverage B) Degree of operating leverage C) Degree of total leverage D) Degree of weighted averageWhat does P/E Ratio of a 10 indicate?a. ​It would take 10 years for an investor to recover his or her initial investmentb. ​The firm will pay a dividend of $10 per share.c. ​The value of the stock will be 10 times the initial investment at the time of maturity.d. ​An investor would receive 10 percent of the total earnings of the firm, at the time of liquidation
What is the​ government's policy on collusion in the United​ States? Explain the rationale for this policy. In the United States A. the government makes collusion legal with antitrust laws because monopolies create no deadweight loss. B. the government makes collusion unnecessary with​ government-imposed barriers to entry because monopolies enhance economic efficiency. C. the government encourages collusion with subsidies because resulting profits can be used to develop new products. D. the government promotes collusion with the Federal Trade Commission because perfectly competitive markets enhance economic efficiency. E. the government makes collusion illegal with antitrust laws because monopolies reduce economic efficiency.
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The Accounts Receivable balance for Bach Consulting is $4,400,000 as of May 31, 2020. Before calculating and recording the month’s bad debt expense, there is a credit balance in the Allowance for Doubtful Accounts of $80,000. The May 2020 net sales were $30,000,000. In the past several years, 1% of net sales have proven uncollectible. An aging of accounts receivable results in a $360,000 estimate for the Allowance for Doubtful Accounts as of May 31, 2020.PART A: PERCENT OF SALES METHODAssume that Bach Consulting uses the percent of sales method to estimate future uncollectible accounts.What adjusting entry does Bach make to record May 2020 Bad Debt Expense?What is "Accounts Receivable, net" on Bach’s May 31, 2018 Balance Sheet? $___________What is "Bad Debt Expense" on Bach’s May 2020 Income Statement? $___________PART B: ANALYSIS OF RECEIVABLES METHODAssume that Bach Consulting instead uses the analysis of receivables method to estimate future uncollectible accounts.What adjusting entry does Bach make to record May 2020 Bad Debt Expense?What is "Accounts Receivable, net" on Bach’s May 31, 2018 Balance Sheet? $___________What is "Bad Debt Expense" on Bach’s May 2020 Income Statement? $___________Problem 3 Use PVH Corp.’s financial statement information to answer the following questions.Provide the following account balances for PVH:February 2, 2020February 3, 2019Accounts Receivable (gross)Allowance for Doubtful AccountsAccounts Receivable, netWhich of the above numbers represents the amount of its February 2, 2020 Accounts Receivable balance that PVH expects to collect in the subsequent year(s)? Which of the above numbers represents that amount that PVH believes it will not collect from its customers as of February 2, 2020? Which of the above numbers represents the total amount PVH is owed by customers as of February 2, 2020? Provide the journal entry (both accounts and amounts) that PVH must have made to record its estimate of Bad Debt Expense in fiscal year 2019. Provide the journal entry (both accounts and amounts) that PVH must have made to record Accounts Receivable writeoffs in fiscal year 2019.

The Destin Company has one temporary difference of $160 caused by accelerated tax depreciation on 12/31/14. The difference will reverse evenly over the next four years. Tax Rates are 20% in 2014, 30% in 2015, and 40% in 2016 and beyond. Pretax book income in 2014 is $1,000. What is 2014 Income Tax Expense?

Answers

Answer: = $168

Explanation:

Destin Company had a $1,000 income in 2014 but also a temporary difference of $160.

This means that they were taxed on the income less the temporary difference.

= 1,000 - 160

= $840

Tax Expense = 840 * 20%

= $168

What is the award given to best business

Answers

 I think you are referring to the Malcolm Baldrige National Quality Award.

Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 80,000 shares of cumulative preferred 3% stock, $20 par and 405,000 shares of $25 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $32,000; second year, $75,000; third year, $80,000; fourth year, $110,000. Determine the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places.

Answers

Answer:

Year 1  

$ 32,000  Total Dividends

$ 32,000 Preferred Stockholers

                Common Stockholers

$ 0,40         Dividends / Preferred Stock

0               Dividends / Common Stock

Year 2  

$ 75,000 Total Dividends

$ 64,000  Preferred Stockholers

$ 11,000   Common Stockholers

$ 0,80      Dividends / Preferred Stock

$ 0,03      Dividends / Common Stock

Year 3  

$ 80,000  

$ 48,000 Preferred Stockholers

$ 32,000 Common Stockholers

$ 0,60      Dividends / Preferred Stock

$ 0,08      Dividends / Common Stock

Year 4  

$ 110,000  

$ 48,000 Preferred Stockholers

$ 62,000 Common Stockholers

$ 0,60    Dividends / Preferred Stock

$ 0,15      Dividends / Common Stock

Explanation:

Cash Dividends: The amount of cash that the company paid to its shareholders as a return of the investing made by the investors.

Common Stock: Ordinary shares that a company issued to the investors hoping to raise funds to the operation of the company.

As return, the investors receive a share of profit that are paid as dividends to each of them, if the company issued preferred share, then the shareholders of common stocks are not guaranteed and are paid after the  

payment made to the preferred stock.

Preferred Stock: The stock gives to the investors a fixed amount of return, which is called, dividend, to its stockholder before paying dividends to common sotckholders.

A. 17.2, B. 15.12 C.12% D. 18.7%What would be the weighted average cost of capital for Lam Bakery, Inc. under the following conditions:

*The capital structure is 40% debt and 60% equity

*The before-tax cost of debt (which includes flotation costs) is 20% and the firm is in the 40% tax bracket

*The firm’s beta is 1.7

*The risk-free rate is 7% and the market risk premium is 6%

Answers

Answer:

Option (B) is correct.

Explanation:

Cost of Equity (Ke) = Rf + Beta ( Rp)

where,

Rf = risk free rate

Rp = Market risk premium

Hence,

Beta systematic risk:

= 7% + 1.7 (6%)

= 7% + 10.2%

= 17.2%

Post Tax cost of debt:

=  Kd ( 1 - T)

where,

Kd = cost of debt

T = tax rate

= 20% * (1-0.4)

= 12%

WACC = [ (Ke × We) + (Wd × Kd(1-T)) ]

where,

We = weight of equity

Wd = weight of debt

             = [(17.2% × 0.6) + (0.4 × 20% × (1 - 0.4))]

             = 10.32% + 4.80%

             = 15.12%

The Perez Company had a 12.5% return on a $100,000 investment in new equipment. The investment resulted in increased sales, and the resultant increase in income amounted to 5% of sales. The turnover (asset utilization) was:

Answers

Answer: 2.5

Explanation:

The Turnover (Asset Utilization) is calculated by dividing the business Turnover (Sales) by it's Assets.

We have the amount of assets (Investment). Now we have to calculate the Sales.

The Net Income was 12.5% of $100,000 so solving for that would be,

= 0.125 * 100,000

= $12,500

$12,500 was the Net Income.

It was said that the Net Income was 5% of sales so using algebra we have,

12,500= 0.05x

x = 12,500/0.05

= $250,000

With sales of $250,000 we can calculate the Turnover as,

Asset Turnover = Sales / Assets( Investment)

= 250,000/100,000

= 2.5

If you need any clarification do react or comment.

Answer:

The Turnover = 2.5

Explanation:

Step 1 : Find Net income

Return on Investment (ROA) = Net income/ Assets

12.5%=Net Income/$100,000

Net income = $100,000*12.5%

Net income= $12,500

Step 2 : Calculate Sales

Net income = Sales *5%

Therefore substitute known values

Sales = $12,500 *100/5

Sales = 250,000

Step 3 : Calculate Turnover ratio

Turnover = sales/ Assets

               = 250,000/100,000

              =2.5

In choosing to acquire a TV manufacturer as part of your entry strategy to enter the Smart TV market, Apple intends to integrate the TV manufacturer within its own company. The transfer of which competencies between the two companies creates the possible scenario for success? A. Fully integrate the company and combine it with the current computer business because monitors and televisions are similar in their requirements
B. Transfer the knowledge of touchscreen capabilities and the Apple ecosystem from Apple to the TV manufacturer to use for the new Apple Smart TV

Answers

Answer:

B. Transfer the knowledge of touchscreen capabilities and the Apple ecosystem from Apple to the TV manufacturer to use for the new Apple Smart TV

Explanation:

In the first case, Apple doesn't have technical expertise on manfucturing the TV. Here the differences in both the devies with respect to the technology that applied in ports, operating system tec

So here the technology that adapted would be difficult for implementation

Instead of this, the apple would create the better position.

So, the option b is correct

Hence, the option a is incorrect

Final answer:

Apple would most benefit by transferring its knowledge of touchscreen capabilities and its ecosystem to the TV manufacturer for the new Apple Smart TV. This strategy leverages Apple's core competencies and shares them with the newly integrated TV manufacturer, enabling the creation of smart TVs that are as intuitive and user-friendly as Apple's other products.

Explanation:

To successfully integrate a TV manufacturer into its own company, Apple would most benefit from the scenario outlined in option B: Transfer the knowledge of touchscreen capabilities and the Apple ecosystem from Apple to the TV manufacturer to use for the new Apple Smart TV.

This strategy aligns with the concept of core competencies, which are the unique strengths and abilities that a corporation possesses. Apple is renowned for its touchscreen technology and unique ecosystem of interconnected products and services, which are two of its core competencies.

By transferring these to the TV manufacturer, Apple can leverage its existing advantages in the new smart TV market, ensuring that its smart TV products are as intuitive and user-friendly as its other offerings. Thus, more than integrating the TV manufacturer fully into its current computer business, what brings greater value and synergy to Apple is the use of its inherent strengths to lead the new venture into success.

Learn more about Business Strategy here:

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