Foundations Of Finance
10th Edition
ISBN: 9780134897264
Author: KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher: Pearson,
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Chapter 14, Problem 2SP
a)
Summary Introduction
To determine: Balance of accounts receivables at the end of April month.
b)
Summary Introduction
To determine: Cash collected during the month of April.
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SMITH'S MARKET (SMALL BUSINESS CASH SALES ACCOUNTING SYSTEM)
In 1989, Robert Smith opened a small fruit and vegetable market in Bethlehem, Pennsylvania. Originally, Smith sold only produce grown on his family farm and orchard. As the market's popularity grew, however, he added bread, canned goods, fresh meats, and a limited supply of frozen goods. Today Smith's Market is a full-range farmers' market with a strong local customer base. Indeed, the market's reputation for low prices and high quality draws customers from other Pennsylvania cities and even from the neighboring state of New Jersey. Currently Smith's has 40 employees. These include sales staff, shelf stockers, farm laborers, shift supervisors, and clerical staff. Recently, Smith has noticed a decline in profits and sales, while his purchases of products for resale have continued to rise. Although the company does not prepare audited financial statements, Robert Smith has commissioned your public accounting firm to assess…
Assuming that Ms. Aysha Alshuili was working as a Marketing manager of a Saud Bahwan Automobiles LLC for 5 years. She then started her own business named THE BEST OMANI DATES. She purchased different types of Omani dates from a manufacturer and sells wholesale and retail traders across Oman. Her terms of credit are 3/10, n/60 for all customers. The business will give 5% trade discount only for wholesale customers and 2% of cash discount for immediate cash payment. Her selling price of Dates per kg is OMR 3 for all the customers.
Assume that a wholesale trader who purchased 1000 kg of dates on 1st day of November 2020 and made the final payment on 11th day of November 2020. What will be the amount payable by the wholesale trader?
a.
OMR 3000
b.
OMR 2940
c.
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d.
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Assuming that Ms. Aysha Alshuili was working as a Marketing manager of a Saud Bahwan Automobiles LLC for 5 years. She then started her own business named THE BEST OMANI DATES. She purchased different types of Omani dates from a manufacturer and sells wholesale and retail traders across Oman. Her terms of credit are 3/10, n/60 for all customers. The business will give 5% trade discount only for wholesale customers and 2% of cash discount for immediate cash payment. Her selling price of Dates per kg is OMR 3 for all the customers.
1- Assume that a retail customer who purchased 10 kg of dates on 10th day of November 2020 and paid cash immediately. What will be the amount payable by the retail customer?
2- Assume that a wholesale trader who purchased 1000 kg of dates on 1st day of November 2020 and made the final payment on 11th day of November 2020. What will be the amount payable by the wholesale trader?
Chapter 14 Solutions
Foundations Of Finance
Ch. 14 - Prob. 1RQCh. 14 - Discuss the shortcomings of the percent of sales...Ch. 14 - Prob. 3RQCh. 14 - Prob. 4RQCh. 14 - Prob. 1SPCh. 14 - Prob. 2SPCh. 14 - (Financial forecastingdiscretionary financing...Ch. 14 - (Financial forecastingpercent of sales) Next years...Ch. 14 - Prob. 5SPCh. 14 - (Percent of sales forecasting) Which of the...
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