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hammer [34]
1 year ago
14

Why would a company’s manager be concerned about the quantity of its purchases returns if its suppliers allow unlimited returns?

Business
1 answer:
Veronika [31]1 year ago
6 0

The company incurs costs in receiving, inspecting, identifying, and returning the merchandise. More returns create more expenses.

Is cost of sales an expense?

Cost of Goods Sold is also known as “cost of sales” or its acronym “COGS.” COGS refers to the cost of goods that are either manufactured or purchased and then sold.

COGS counts as a business expense and affects how much profit a company makes on its products.

What are the depreciation expense?

Depreciation expense is that portion of a fixed asset that has been considered consumed in the current period.

This amount is then charged to expense. The intent of this charge is to gradually reduce the carrying amount of fixed assets as their value is consumed over time.

Learn more about this here:

brainly.com/question/26990784

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Option (A)

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You are evaluating your company’s segmentation approach and discover an important missing condition. They have measured their ta
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a. Particulars                                Amount

Gross sales                                  $925,000

Less: COGS                                 <u>$490,000</u>

EBITDA                                        $435,000

Less: Depreciation                      <u>$120,000</u>

EBIT                                              $315,000

Less: Interest on notes payable <u>$8,800   </u>  (220000*4%)

EBT                                               $306,200

Less: Tax (35%*306200)             <u>$107,170</u>

Net Income                                   <u>$199,030</u>

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Operating cash flow = $319,030

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