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san4es73 [151]
1 year ago
5

If a financial analyst divides a company's cost of goods sold for year 2 by its cost of goods sold for year 1, he/she is perform

ing?
Business
1 answer:
Sedbober [7]1 year ago
8 0

If a financial analyst divides a company's cost of goods sold for year 2 by its cost of goods sold for year 1, he/she exists performing percentage analysis approach for horizontal analysis.

<h3>What is cost of goods sold?</h3>

The total sum that your company spent on expenses directly associated with the selling of goods is known as the cost of goods sold. Depending on the nature of your firm, this could also include raw materials, packaging, direct labor involved in making or selling the product, and items bought for resale.

Costs of Goods Sold (COGS) are the expenses incurred over a specific time period to produce your goods. COGS is calculated as initial inventory plus purchases minus ending inventory. An income statement's cost of goods sold (COGS) column lists the costs incurred by a business to produce, procure, and deliver a commodity or service to the final consumer.

The direct charge, cost, or expense related to producing goods and services that are sold to consumers at retail is known as the cost of goods sold. Overhead costs like rent, security fees, communication fees, etc. are not included in COGS.

Hence,  If a financial analyst divides a company's cost of goods sold for year 2 by its cost of goods sold for year 1, he/she exists performing percentage analysis approach for horizontal analysis.

To learn more about cost of goods sold refer to:

brainly.com/question/24561653

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Harvey and Liza are discussing ethics. Harvey says that ethics is a range of moral principles that steers our behavior. Liza say
swat32
B. Only Harvey is correct
5 0
3 years ago
Losses from ________ exposure generally reduce taxable income in the year they are realized. ________ exposure losses may reduce
VMariaS [17]

Losses from <u>transaction</u> exposure generally reduce taxable income in the year they are realized. <u>Operating </u>exposure losses may reduce taxes over a series of years.

Transaction exposure is the extent of uncertainty companies concerned in international exchange face. Specifically, it's far the chance that currency exchange quotes will fluctuate after a company has already undertaken a financial duty.

Taxable income is the part of your gross income that the IRS deems a problem with taxes. It includes each earned and unearned profit. Taxable earnings are normally less than adjusted gross income because of deductions that reduce it.

Gross profits consist of all income you obtain that is not explicitly exempt from taxation below the Internal Sales Code (IRC). Taxable profits are the portion of your gross earnings that's sincerely a problem with taxation. Deductions are subtracted from gross profits to reach your amount of taxable earnings.

Learn more about Transaction exposure here brainly.com/question/15021490

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6 0
1 year ago
Given the following information, determine the beta coefficient for Stock L that is consistent with equilibrium: = 9.25%; rRF =
Ainat [17]

Answer:

The beta coefficient for Stock L that is consistent with equilibrium

Explanation:

According to Capital Asset Pricing Model, the formula to compute expected rate of return is equals to

Expected rate of return = Risk free rate of return + Beta × (Market risk - risk free rate of return)

where,

rRF = risk free rate of return

rM = market risk

Stock L that is consistent with equilibrium is expected rate of return which equals to = 9.25%

So,

9.25% = 3.6% + Beta × (8.5% - 3.6%)

9.25% = 3.6% + 4.9% Beta

9.25% - 3.6% = 4.9% Beta

5.65% = 4.9% Beta

Beta = 5.65% ÷ 4.9% = 1.15

Hence, the beta coefficient for Stock L that is consistent with equilibrium is 1.15

8 0
3 years ago
2/31/2020: During 2020, $10,000 in accounts receivable were written off. At the end of the second year of operations, Yolandi Co
Artyom0805 [142]

Answer:

$395,000

Explanation:

Bad Debt expense:

= 1.5% of sales will be uncollectible

= 1.5% × $1,000,000

= 0.015 × $1,000,000

= $15,000

Allowance for Doubtful accounts:

= Bad Debt expense - accounts receivable written off

= $15,000 - $10,000

= $5,000

Net realizable value:

= Accounts receivable - Allowance for Doubtful accounts

= $400,000 - $5,000

= $395,000

6 0
3 years ago
Patricia, a professional gambler, had the following income and expenses in her business: Gambling winnings$275,000Expenses Fees
Yuliya22 [10]

Answer:

C. $258,000.

Explanation:

The computation of the net income reported is shown below:

= Gambling winnings - Travel costs - Office expenses - Supplies - Business long-distance phone charges

= $275,000 - $8,000 - $5,000 - $3,000 - $1,000

= $258,000

For computing this we ignored the illegal cost related to the illegal parking and the illegal information

5 0
3 years ago
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