Text a business purchased merchandise for 15000 on

This preview shows page 32 - 37 out of 55 pages.

Question 9Question textA business purchased merchandise for $15,000 on account; terms are 2/10, n/30. If $2,600 of the merchandise was returned and the remaining amount due was paid within the discount period, the purchase discount would be:
Question 10Question textOn December 31, 2015, Sveva Inc. has total liabilities of $252,000 and total equity of $420,000. The company needs to raise additional funds through debt and equity. The company will issue 40,000 shares ofcommon stock at $4.50 per share and in addition it intends to borrow as much as it can from Bank of Switzerville. Bank of Switzerville requires a maximum debt-to-asset ratio of 0.75. What is the maximum additional amount that Sveva can borrow after the additional stock is issued?
Question 11Question textBelow is selected financial information for Panettone, Inc.In the answer boxes below, select the right answer from the drop-down menu. Each answer is worth 2 points. Answers are rounded to two decimals.
Question 12Question textIf a company has a current ratio below 1, which of the following transactions would cause the current ratio to increase?Select one:a. Purchasing land with cash b. Collecting an account receivable c. Purchasing land by signing a short-term note d. Purchasing inventory by signing a long-term note FeedbackYour answer is incorrect.The correct answer is: Purchasing inventory by signing a long-term note
Question 13Question textABC Inc. sells socks. During January 2016, its inventory records for one brand of its socks were as follows:QuantityPrice perpairBeginning Inventory10pairs$20=$200January 6 Purchase4pairs$25=$100January 10 Sale5pairsN/AJanuary 15 Purchase7pairs$30=$210January 20 Sale10pairsN/AJanuary 25 Purchase 4pairs$30=$120See information above. Using this information, the cost of goods sold using the periodic average cost method is
Question textIf at the end of 2016, ending inventory is overstated, the

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture