Matterhorn, Inc. had the following sales for the past six months. Matterhorn collects its credit sales
30% in the month of sale, 60% one month after the sale, and 10% two months after the sale.
Cash Sales Credit Sales
January $50,000 $50,000
February $70,000 $110,000
March $55,000 $95,000
April $78,000 $130,000
May $80,000 $105,000
June $75,000 $148,000
What are Matterhorn's total cash receipts for the month of March?
A) $150,000 B) $119,000 C) $154,500 D) $99,500
C
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The Oberon Company purchased a delivery truck for $95,000 on January 2. The truck was estimated to have a $3,000 salvage value and a 4 year life. The truck was depreciated using the straight-line method. At the beginning of the third year, it was determined the truck's total useful life would be 6 years rather than 4, and the salvage at the end of the 6th year would be $1,500. Determine the depreciation expense for the truck for the 6 years of its life. YearDepreciation expense1?2?3?4?5?6?
What will be an ideal response?
The accountant for Mandarin Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available: Retained earnings balance at the beginning of the year$819,000Net income for the year 230,000Cash dividends declared for the year 42,000Retained earnings balance at the end of the year 1,007,000Cash dividends payable at the beginning of the year 10,000Cash dividends payable at the end of the year 11,000What is the amount of cash dividends paid that should be reported in the financing section of the statement of cash flows?
A. $43,000. B. $63,000. C. $42,000. D. $41,000. E. $1,000.
Mars Inc. aired a radio ad for its pizza with a catchy jingle that garnered huge appreciation. After two weeks, it ran a magazine ad for the pizza but failed in its appeal. Which of the following reasons can explain the reduction in persuasiveness of the magazine ad for Mars's pizza?
A. The magazine ad does not create a primacy effect unlike the radio ad. B. The processing stimulated by the magazine ad is less controlled and less favorable than the processing stimulated by the radio ad. C. In order to view a magazine ad, people have to buy the magazine which features the ad, resulting in reduced appeal. D. The magazine ad is part of a huge clutter which has negatively affected the attitude of the target audience toward Mars's Pizza. E. The radio ad creates a stimulation based on the recency effect, unlike the magazine ad.
The past performance of the parties under a continuing contract is irrelevant in determining what the contract means
Indicate whether the statement is true or false