[The following information applies to the questions displayed below.] The accounting records of Nettle Distribution show the following assets and liabilities as of December 31 for Year 1 anc Year 2. December 31 Cash Accounts receivable office supplies office equipment Trucks Building Land Accounts payable Note payable Numerator: Year 1 $ 56,760 30,810 4,860 1 1 149,190 58,380 3. Compute the Year 2 year-end debt ratio. 0 0 81,000 0 Year 2 $ 11,341 24,155 3,560 158,916 Debt Ratio Denominator: 67,380 194,6141 48,564 40,174 143,178 = Debt Ratio Debt ratio

Q: What are the important guidelines for Selecting a MARR?

A: It places a base gainfulness prerequisite on the discount rate, or MARR, which a venture or…

Q: Why was the Sarbanes-Oxley Act developed and enacted?

A: Introduction:- The Sarbanes–Oxley Act of 2002 is a federal law in the United States that sets…

Q: What would the journal entry be?

A: A pension plan is usually an agreement between the employer and employee wherein, the employer…

Q: What is ethical accounting

A: Ethics: At its most basic level, ethics is a set of moral rules that guide behavior. They have an…

Q: What is ALCO and what important duties do they perform?

A: A resource with economic value that a person, company, or country owns or controls with the…

Q: The introduction of a research summarizes the current understanding and background information of…

A: Answer:-  Research definition:- "Creative and methodical activity performed to improve the reservoir…

Q: count ROCE

A: ROCE stands for Return on Capital Employed.

Q: How is materiality concept applied?

A: Accounting principles:

Q: Do ethical standards have anything to do with culture and diversity?

A: Ethical standard The founders of the organization created a set of ethical guidelines to explain the…

Q: What does the DuPont identity tell us that ROE is affected by?

A: DuPont = Net profit margin*Asset turnover*Equity multiplierNet incomeRevenue*SalesAvg total…

Q: What is the Baumol model, and how is it used?

A: The Baumol model, also known as the Baumol-Allais-Tobin (BAT) model, is a cash management model. In…

Bad Debts

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.  

Accounts Receivable

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.