"Do we have a loyalty program?" is a question about which of the 5Cs? a. collaborators b. context c. customer d. company

Response:

The yearly average return stands at 9.6 %

Clarification:

Calculating the average return

Assuming the price per share is 100

                                                       Initial    Growth             Final

                                                         Value            %                   Value

Company A  50 % at 100                5,000              8 %                 5,400

Company B 30 % at 100                 3,000              12 %                3,360    

Company C 20 % at 100                  2,000             10 %                2,200

Total amounts                             10,000                                     10,960

To find the average return, take the increase in value over the base, divided by the base

10,960 -  10,000  =  960/ 10000  = 9.6 % average return

Response:

a. The remaining store supplies at the end of the fiscal year total $2,550.

Debit Supplies expense 2,550

    Credit Supplies 2,550

b. For the fiscal year, the amount for expired insurance, categorized as an administrative expense, is $1,720.

Debit Insurance expense 1,720

    Credit Prepaid insurance 1,720

c. The depreciation expense associated with store equipment, classified as a selling expense, totals $6,500 for the fiscal year.

Debit Depreciation expense 6,500

    Credit Accumulated depreciation, equipment 6,500

d. To gauge shrinkage, a physical inventory count taken at fiscal year-end indicates $10,720 of merchandise is still on hand.

Debit Cost of goods sold 2,280

    Credit Merchandise inventory 2,280

Cash $22,150

Merchandise inventory 10,720

Store supplies 2,550

Prepaid insurance 1,080

Store equipment 42,800

Accumulated depreciation—Store equipment $25,750

Accounts payable 17,000

Common stock 4,000

Retained earnings 25,000

Dividends 2,100

Sales 115,900

Sales discounts 2,100

Sales returns and allowances 2,000

Cost of goods sold 40,280

Depreciation expense—Store equipment 6,500

Sales salaries expense 12,900

Office salaries expense 12,900

Insurance expense 1,720

Rent expense—Selling space 8,000

Rent expense—Office space 8,000

Store supplies expense 2,550

Advertising expense 9,300

Totals $187,425 $187,425

a) The current ratio is calculated as current assets divided by current liabilities, resulting in $36,050 / $17,000 = 2.12

c)  Nelson company

Income Statement

For the month ending January 31, 202x

Revenues:

• Total net sales                                                              $111,800

Expenses:

• Cost of goods sold $40,280
• Depreciation expense - equipment $6,500
• Sales salaries expense $12,900
• Office salaries expense $12,900
• Insurance expense $1,720
• Rent expense - Selling space $8,000
• Rent expense - Office space $8,000
• Store supplies expense $2,550
• Advertising expense $9,300                              ($102,150)

Operating income                                                           $9,650

b) Nelson company

Income Statement

For the month ending January 31, 202x

Sales:

• Total sales $115,900
• Sales discounts ($2,100 )
• Sales returns and allowances ($2,000 )            $111,800

Cost of goods sold                                                           ($40,280)

Gross profit                                                                         $71,520

Selling expenses:

• Depreciation expense - equipment $6,500
• Sales salaries expense $12,900
• Rent expense - Selling space $8,000
• Store supplies expense $2,550
• Advertising expense $9,300                                   ($39,250)

S&A expenses:

• Office salaries expense $12,900
• Insurance expense $1,720 Rent expense - Office space $8,000                     

Operating income                                                                 $9,650