Fashion Jewelers uses the perpetual inventory system. On April 2, Fashion sold goods with a cost of $5,000 for $10,000 with terms of 4/15, n/30. On April 4, the customer reported damaged goods and Fashion granted a $2,000 sales allowance
On April 10, Fashion received the payment for the sale. Give the journal entry that will be recorded on April 10 by Fashion.
A)
Cash 7,680
Sales Discount 320
Accounts Receivable 8,000
B)
Cash 8,000
Accounts Receivable 8,000
C)
Accounts Receivable 8,000
Sales 8,000
D)
Cash 8,000
Sales Discount 320
Accounts Receivable 7,680
A
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Answer the following statement true (T) or false (F)
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A firm sells its headquarters building at a gain. This means that at the time of sale
a. the cash or other assets received were greater than the building's book value. b. the cash or assets received in a transaction were less than the carrying value of the assets given up. c. the cash or other assets received were greater than the building' carrying value. d. the cash or assets received in a transaction were less than the building's book value. e. both choices a and c are correct.
Maynard Company's balance sheet and income statement are provided below:Maynard CompanyBalance SheetAs of December 31???AssetsYear 2Year 1Cash$ 83,500$ 92,000Accounts receivable94,000 90,000Inventory 62,50060,000Plants and equipment, net500,000525,000Land___150,000__150,000Total assets $ 890,000$ 917,000? ?Liabilities and Stockholders' Equity ?Accounts payable $ 73,000$ 62,000Notes payable115,000160,000Capital stock, no par440,000400,000Retained earnings____262,000__295,000Total liabilities and stockholders' equity$ 890,000$ 917,000Maynard CompanyIncome StatementYears Ended December 31?Year 2Year 1Sales$ 549,000$ 468,150Less cost of goods sold___360,000___289,500Gross margin189,000178,650Less operating expenses
____86,500____55,450Income before taxes102,500123,200Income taxes____18,500____16,600Net income $ 84,000$ 106,600The company paid cash dividends of $2.00 per share during Year 2. On December 31, Year 2, the stock was listed on the stock exchange at a price of $78.25 per share.Required:Compute the following ratios for Year 2:(a) Accounts receivable turnover(b) Average days to collect receivables(c) Inventory turnover(d) Average days to sell inventory(e) Debt to assets ratio(f) Debt to equity ratio(g) Net margin(h) Asset turnover(i) Return on investment(j) Dividend yieldRound your answers to one decimal place. What will be an ideal response?