Please answer these questions and give an explanation as to the answer:

Question 1

Gaston Co. reports the following amounts:

Total revenue in 2012	$100,000
Accounts Receivable at the end of 2012	$20,000
Accounts Receivable at the end of 2011	$30,000

Calculate the amount of cash collected from customers in 2012?

Question 2

Taylor Co. and John Co. have the following ratios:

	Taylor Co.	John Co.
Debt to equity ratio	60%	80%
Return on assets	10%	12%
Return on equity	6%	9%
Current ratio	3.0	2.0

What do the ratios tell us about the companies?

Question 3

Betterment Company usually sells nearly all of its current inventory before purchasing additional inventory. The companys policy is to limit the amount of old inventory to make sure current inventory consists of the newest items. Under these operating conditions:

Question 4

A company has the following three events during the year: 1. Receive cash from customers for services provided last year, $2,500 2. Received cash from customers for services provided in the current year, $10,000 3. Receive cash from customers for services to be provided next year, $4,000 How much would be recorded as revenue in the current year?