Answer:
The answer is 3. Subtracting cost of goods sold from net sales
Explanation:
Gross margin or Gross profit is the profit a business earn after deducting cost associated with making the goods from net sales(Net sales - Cost of goods sold or Cost of sales)
To calculate cost of goods sold - opening inventory/stock plus purchases minus closing inventory/stock.
The attached file also support this statement.
Answer:
Borrowed amount of $2,500
Explanation:
The computation is shown below;
The Total available balance is
= Beginning balance + Receipts - Disbursements
= $12,000 + $30,000 - $34,500
= $7,500
As the cash should be maintained of $10,000
So,
The amount to be borrowed is
= $10,000 - $7500
= $2,500
Answer:
A) 10.15%
Explanation:
Cost of equity (Re) = 14.06% or 0.1406
cost of preferred stock (Rp) = 7/65 = 0.10769
cost of bonds (Rb) = 7.5% or 0.075
outstanding shares = 2.5 million shares x $42 = $105 million
bonds outstanding = $1,000 x 80,000 bonds = $80 million
preferred stock = $65 x 750,000 = $48.75 million
corporate tax rate = 38% or 0.38
total market value of equity + debt (in millions) = $105 + $48.75 + $80 = $233.75
WACC = [(outstanding shares / total market value) x Re] + [(preferred stock / total market value) x Rp] + {[(bonds outstanding / total market value) x Rb] x (1 - tax rate)}
WACC = [($105m / $233.75m) x 0.1406] + [($48.75m / $233.75m) x 0.10769] + {[($80m / $233.75m) x 0.075] x (1 - 0.38)}
WACC = 0.06316 + 0.02246 + 0.01591 = 0.10153 or 10.15%
Answer:
c. $18, 750
Explanation:
The computation of the amount of interest expense i.e. accrued is shown below:
= Issued amount × yield on the bonds × given months ÷ total number of months in a year
= $562,500 × 10% × 4 months ÷ 12 months
= $18,750
The 4 months is calculated from July 1 to October 31
Hence, the correct option is c. $18,750
Answer: Option B
Explanation: In simple words, inadequate disclosures refers to the situation when a company fails to make accurate or enough discloses in a statement as required by various laws and regulations.
The disclosure can be done through any medium such as media or in the yearly statement but if it does not contain proper information that it will be considered as an offence and suitable actions could be taken.
