Question
a)On January 1, Easton Company had cash on hand of $95,000. All of January's $236,000 sales...
a)On January 1, Easton Company had cash on hand of $95,000. All of January's $236,000 sales were on account. December sales of $218,000 were also all on account. Experience has shown that Easton typically collects 40% of receivables in the month of the sale and the balance the following month. All materials and supplies are purchased on account and Easton has a history of paying for half of these purchases in the month of purchase and half the following month. Such purchases were $177,000 for December and $151,000 for January. All other expenses including wages are paid in the month incurred. These amounted to $42,000 in December and $56,000 in January. Use this information to determine the projected ending balance of cash on hand for January. (Round answer to the nearest whole dollar)
b)On January 2, 2018, Baltimore Company purchased 12,000 shares of the stock of Towson Company at $12 per share. Baltimore obtained significant influence as the purchase represents a 30% ownership stake in Towson Company. On August 1, 2018, Towson Company paid cash dividends of $23,000. Baltimore Company intended this investment to a long-term investment. On December 31, 2018, Towson Company reported $65,000 of net income for FY 2018. Additionally, the current market price for Towson Company's stock increased to $27 per share at the end of the year. Use this information to determine, how much Baltimore Company should report for its investment in Towson Company on December 31, 2018. (Round to the nearest dollar.)
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
On January 1, Easton Company had cash on hand of $85,000. All of January's $232,000 sales...
On January 1, Easton Company had cash on hand of $85,000. All of
January's $232,000 sales were on account. December sales of
$250,000 were also all on account. Experience has shown that Easton
typically collects 25% of receivables in the month of the sale and
the balance the following month. All materials and supplies are
purchased on account and Easton has a history of paying for half of
these purchases in the month of purchase and half the following
month....
On January 1, Easton Company had cash on hand of $90,000. All of January's $236,000 sales...
On January 1, Easton Company had cash on hand of $90,000. All of
January's $236,000 sales were on account. December sales of
$238,000 were also all on account. Experience has shown that Easton
typically collects 25% of receivables in the month of the sale and
the balance the following month. All materials and supplies are
purchased on account and Easton has a history of paying for half of
these purchases in the month of purchase and half the following
month....
1) On January 1, Easton Company had cash on hand of $105,000. All of January's $208,000...
1) On January 1, Easton Company had cash on hand of
$105,000. All of January's $208,000 sales were on account. December
sales of $202,000 were also all on account. Experience has shown
that Easton typically collects 45% of receivables in the month of
the sale and the balance the following month. All materials and
supplies are purchased on account and Easton has a history of
paying for half of these purchases in the month of purchase and
half the following...
On January 1, Easton Company had cash on hand of $105,000. All of January's $232,000 sales...
On January 1, Easton Company had cash on hand of $105,000. All
of January's $232,000 sales were on account. December sales of
$214,000 were also all on account. Experience has shown that Easton
typically collects 45% of receivables in the month of the sale and
the balance the following month. All materials and supplies are
purchased on account and Easton has a history of paying for half of
these purchases in the month of purchase and half the following
month....
On January 1, Easton Company had cash on hand of $115,000. All of January's $220,000 sales...
On January 1, Easton Company had cash on hand of
$115,000. All of January's $220,000 sales were on account. December
sales of $246,000 were also all on account. Experience has shown
that Easton typically collects 40% of receivables in the month of
the sale and the balance the following month. All materials and
supplies are purchased on account and Easton has a history of
paying for half of these purchases in the month of purchase and
half the following month....
On January 1, Easton Company had cash on hand of $85,000. All of January's $204,000 sales...
On January 1, Easton Company had cash on hand of $85,000. All of
January's $204,000 sales were on account. December sales of
$210,000 were also all on account. Experience has shown that Easton
typically collects 35% of receivables in the month of the sale and
the balance the following month. All materials and supplies are
purchased on account and Easton has a history of paying for half of
these purchases in the month of purchase and half the following
month....
On January 1, Easton Company had cash on hand of $80,000. All of January's $220,000 sales...
On January 1, Easton Company had cash on hand of $80,000. All of
January's $220,000 sales were on account. December sales of
$238,000 were also all on account. Experience has shown that Easton
typically collects 25% of receivables in the month of the sale and
the balance the following month. All materials and supplies are
purchased on account and Easton has a history of paying for half of
these purchases in the month of purchase and half the following
month....
On January 1, Easton Company had cash on hand of $90,000. All of January's $240,000 sales...
On January 1, Easton Company had cash on hand of
$90,000. All of January's $240,000 sales were on account. December
sales of $242,000 were also all on account. Experience has shown
that Easton typically collects 25% of receivables in the month of
the sale and the balance the following month. All materials and
supplies are purchased on account and Easton has a history of
paying for half of these purchases in the month of purchase and
half the following month....
On January 1, Easton Company had cash on hand of $110,000. All of January's $220,000 sales...
On January 1, Easton Company had cash on hand of $110,000. All
of January's $220,000 sales were on account. December sales of
$206,000 were also all on account. Experience has shown that Easton
typically collects 30% of receivables in the month of the sale and
the balance the following month. All materials and supplies are
purchased on account and Easton has a history of paying for half of
these purchases in the month of purchase and half the following
month....
On January 1, Easton Company had cash on hand of $115,000. All of January's $228,000 sales...
On January 1, Easton Company had cash on hand of
$115,000. All of January's $228,000 sales were on account. December
sales of $246,000 were also all on account. Experience has shown
that Easton typically collects 20% of receivables in the month of
the sale and the balance the following month. All materials and
supplies are purchased on account and Easton has a history of
paying for half of these purchases in the month of purchase and
half the following month....
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 4 minutes ago
asked 16 minutes ago
asked 36 minutes ago
asked 37 minutes ago
asked 55 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 2 hours ago