Answer:
46.67%
Explanation:
Gross margin is the ratio of gross profit to the total sales. The gross profit is the difference between the sales and cost of goods sold. Other cost given such as land and selling and distribution cost make up assets and operating expenses respectively.
Hence
Gross profit = $30,000 - $16,000
= $14,000
Gross margin = $14,000/$30,000
= 0.4667
The company's gross margin is 46.67%.
Answer:
I used an excel spreadsheet to record this transactions on an accounting equation.
Practice Makes Perfect, Inc.
Income Statement
For the month ended July 31, 202x
Revenues $2,000
Expenses:
- Advertising expense $500
- Rent expense $1,000
- Wages expense $1,000
- Supplies expense $300
- Depreciation expense $750
- Interest expense $417 <u> ($3,967)</u>
Net income ($1,967)
Practice Makes Perfect, Inc.
Balance Sheet
For the month ended July 31, 202x
Assets:
- Cash $99,783
- Accounts receivables $1,800
- Supplies $1,700
- Pianos $47,250
Total assets $150,533
Liabilities:
- Accounts payable $2,500
- Notes payable $50,000
Total liabilities $52,500
Stockholders' equity
- Common stock $100,000
- Retained earnings ($1,967)
Total stockholders' equity $98,033
Total liabilities + equity $150,533
The correct answer is DEPRECIATION.
Depreciation is defined as the incremental cost of wear and tear on an asset.
Depreciation is an accounting concept that allows a business or individual to allocate the cost of a capital item over the useful life of the item.
Answer:
c. the cash realizable value of accounts receivable in the balance sheet is the same before and after an account is written off.
Explanation:
Under the allowance method of accounting for uncollectible accounts, the cash realizable value of accounts receivable in the balance sheet is the same before and after an account is written off and bad debt expenses is debited.
This means that in the period in which an account previously written off is collected, the income is unaffected.
Also, under the allowance method of accounting, total assets will remain unchanged when a particular account is being written off.
<h2>Luke cannot sell the product because patent is already been issued to the similar product.</h2>
Explanation:
According to the given scenario, Luke though he is an inventor and he has created a product which is similar to already patented, Luke is not allowed to sale based on the patent rule.
Since there is a patent right obtained by someone for similar product, then what Luke is trying to do is against the Patent law.
Luke cannot prove that he already had an idea. Any law always needs a proof than a statement.
Luke may be punishable under the patent law if he tries to sell his invention.
