- Catering equipment was purchased at a cost of $23,000 that has an estimated life of 10 years and no residual value. Using Straight Line depreciation method, calculate the depreciation expense for its second full year of use.

( ) $2,440

( ) $2,300

( ) $1,150

( ) $4,600

-Our invoices have the following Terms: Net 20 Days. This means the customer has 20 days to pay. Let's see how fast they are really paying us. Compute the amount of Outstanding Accounts Receivable (A/R) based on a 365 Day year if: The average Accounts Receivable balance was $180,000 (amount customers owed us) and our annual sales was 1,700,000 for the year. . . The formula to compute Days of AR outstanding is Days = {(The Average outstanding A/R balance) / (Annual Sales)} x 365 Days. Round-up to the nearest whole day.

( )20

( ) 29

( )39

( )45

-Inventory turnover is defined as Cost of Sales for the Period / Average Inventory for the Period. The period can be a week, a month, a quarter, a year, etc. A restaurant with a weekly food inventory turnover of 0.5 would find that its food inventory is turning over:

( )Every day (7 times per week)

( ) Five times a week

( ) Once every two weeks

( ) 1/2 as fast as its beverage inventory