Jinx Company budgets its March sales at $70,000 and April sales at $80,000. It estimates...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Jinx Company budgets its March sales at $70,000 and April sales at $80,000. It estimates that 60% of sales are made in cash and 40% are on credit. 70% of credit sales are collected in the month of sale and 30% are collected in the following month. Jinx also budgets its March inventory purchases at $40,000 and April inventory purchases at $35,000. It estimates that 30% of purchases will be paid during the current month, and 70% will be paid in the following month. On Jinx's budgeted Balance Sheet for the month of April, its Accounts Receivable balance will be:
$52,500
$24,500
$9,600
$14,900
Branson Company's Financial Leverage increased from 11% to 15% in the current year, while its average cost of borrowing remained the same. This indicates that the company is:
Valued at a higher stock price than before.
Paying more in interest expense than before.
Making a relatively higher return on its assets than before.
More highly financed by debt than before.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
