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guapka [62]
3 years ago
14

The following income statements were drawn from the annual reports of the Denver Company and the Reno Company: Denver* Reno* Net

sales $ 33,200 $ 86,900 Cost of goods sold (15,440 ) (63,050 ) Gross margin 17,760 23,850 Less: Operating exp. Selling and admin. exp. (11,760 ) (15,348 ) Net income $ 6,000 $ 8,502 *All figures are reported in thousands of dollars. Required a-1. Compute the gross margin percentages and return-on-sales ratios of Denver and Reno. (Round your answers to the nearest whole number.)
Business
1 answer:
Lynna [10]3 years ago
6 0

Answer:

1. Gross margin percentage:

For Denver and the Reno is 53% and 27%

2. Return on sales ratio:

For Denver and the Reno is 18% and 10%

Explanation:

1. The formula to compute the gross margin percentage is shown below:

Gross margin percentage = (Gross margin) ÷ (Net sales) × 100

For Denver  = ($17,760 ÷ $33,200) × 100 = 53%

For Reno = ($23,850 ÷ $86,900) × 100 = 27%

2. The formula to compute the return-on-sales ratios is shown below:

Return-on-sales ratio = (Net income) ÷ (Net sales) × 100

For Denver  = ($6,000 ÷ $33,200) × 100 = 18%

For Reno = ($8,502 ÷ $86,900) × 100 = 10%

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Kemala is a factory worker in Indonesia, where she earns the equivalent of roughly U.S$1 per hour producing T-shirts to export t
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Explanation:

Going by standards in the United States, the wages that Kemala is earning may be tagged as exploitative. If however, it is shown that Kamala works in that factory of her own accord, then it means that the wage is not exploitative to her because she must be earning more from the factory than other alternatives to it which was why she chose to work there.

It would simple mean that the wages in Indonesia are small by American standards and not just the ones Kemala is receiving from the factory.

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2 years ago
Assume that a currency's spot and future prices are the same, and the currency's interest rate is higher than the U.S. rate. The
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Answer:

put upward pressure on; put downward pressure on

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Explanation:

If both the spot and the forward price of a currency are the same, it means that it should be worth the same today than in the future. If you can earn higher interest by investing in that foreign currency, then investors will start purchasing higher amounts of the foreign in order to invest and gain higher rates.

Since the demand for the foreign currency increases, that put upward pressure its current price. Simply more investors will want to invest in that currency. While that happens right now, the market will tend to adjust to correct this arbitrage, and the way this can be adjusted is by lowering the future price of the currency. That puts downward pressure on the forward rate.

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