Questions -
1. During the year 2015, Sanchez Corp. sold goods and earned revenue of $16,000,000. The company's beginning total assets was $8,000,000. Its assets turnover ratio was 1.6 times. Calculate the ending total assets of Sanchez.
$12,000,000
$8,000,000
$14,000,000
$6,000,000
2. Bison Company reported sales revenue for 2013 of $900,000. The products were sold with a nine-month warranty. Members of Bison's management estimate the cost of the warranty will be equal to 5% of sales revenue. Which of the following will be included in the entry to record the actual amounts paid out as a result of warranty claims?
a debit to Estimated Warranty Payable for the actual amount of payments
a credit to Estimated Warranty Payable for $45,000
a debit to Estimated Warranty Payable for $45,000
a debit to Warranty Expense for the actual amount of payments