5)The following data available for Delicious Catering Ltd. Account Beginning balance Ending Balance Use/source of cash Accounts
Question:
5)The following data available for Delicious Catering Ltd.
Account | Beginning balance | Ending Balance | Use/source of cash |
Accounts payable | 47,800 | 55,500 | |
Inventory | 22,600 | 29,700 | |
Long term debts | 85,500 | 145,600 | |
Common stock | 120,500 | 100,000 |
Other information: The company just placed an order for 9,000 pieces of pizza bases at a price of $0.5/unit. The supplier offers the credit terms of 1.5/10, net 40.
Required:
a)Calculate the net cash and identify the source of cash or the use of cash for each account by filling into the column next to the ending balance.
b)What is the discount being offered by the supplier to Delicious Catering Ltd.? How quickly must the company pay to get the discount? If the company takes the discount, how much should they pay?
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780134486840
6th Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura