In this scenario, the handler company receives a $21.85 discount (1% of the amount borrowed) for settling their payment within 15 days. Consequently, rather than sending the full sum of $2,185 to Ellen Co., they will only remit $2,163.15, which is $21.85 less than the initial amount due, taking advantage of the 1% discount.
Kittyz's total projected sales for March is estimated at $100,000. The specifics of beginning and ending inventory do not affect sales figures; they only pertain to production amounts. Total anticipated sales for Kittyz in March = 20000 units * $5 = $100,000.
Answer: 90 days and 4.06 times
Explanation:
The short-term operating cycle is calculated by adding Average production process time + Days goods are held + Days Accounts receivable are due]
= 40 + 15 + 35
= 90 days
With a 365-day year, the cycle will turnover;
= 365/90
= 4.0556
= 4.06 times
The journal entries to be recorded are as follows: For Stefan Ceramics, the first entry to recognize the purchase of 720 kgs of tungsten carbide at $280 per kg, totaling 291,600 would involve debiting Merchandise Inventory and crediting Accounts Payable/Cash for 291,600. The second entry documents the use of 720 kgs of tungsten carbide, transferring the full amount used to Work in Process, with the corresponding credit to Merchandise Inventory, also for 291,600.
C) Stock prices will fluctuate only in response to unexpected news.
