Alan Jackson invests $ 20,000 at 8 % annual interest , leaving the money invested without withdrawing any of the interest for 8 years . At the end of the 8 years , Alan withdraws the accumulated amount of money .
Guillen , Inc . began work on a $ 7,000,000 contract in 2014 to construct an office building . Guillen uses the completed-contract method . At December 31 , 2014 , the balances in certain accounts were Construction in Process $ 1,715,000 ; Accounts Receivable $ 240,000 ; and Billings on Construction in Process $ 1,000,000 .
Lazaro Inc . sells goods on the installment basis and uses the installment-sales method . Due to a customer default , Lazaro repossessed merchandise that was originally sold for $ 800 , resulting in a gross profit rate of 40 %. At the time of repossession , the uncollected balance is $ 520 , and the fair value of the repossessed merchandise is $ 275
Morlan Corporation is preparing its December 31 , 2014 , financial statements . Two events that occurred between December 31 , 2014 , and March 10 , 2015 , when the statements were issued , are described below .
Foley Corporation has seven industry segments with total revenues as follows .
Operating profits and losses for the seven industry segments of Foley Corporation are :
Heartland Company ’ s budgeted sales and budgeted cost of goods sold for the coming year are $ 144,000,000 and $ 99,000,000 , respectively . Short-term interest rates are expected to average 10 %. If Heartland can increase inventory turnover from its present level of 9 times a year to a level of 12 times per year .
The payout ratio is calculated by dividing