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Delicious77 [7]
3 years ago
7

The following is a listing of some of the balance sheet accounts and all of the income statement accounts for Northview Company

as they appear on the company’s adjusted trial balance.
Accounts Payable $10,000
Accounts Receivable 11,000
Inventory 20,000
Advertising Expense 12,000
Cost of Goods Sold 89,000
Delivery Expense 6,000
Income Tax Expense 2,000
Insurance Expense 1,000
Rent Expense 12,000
Sales Revenue 160,000
Sales Discounts 11,000
Sales Returns & Allowances 19,000

Use the information above to answer the following question. The gross profit percentage would be closest to: _____ %

A) 25.6%

B) 31.5%

C) 55.6%

D) 68.5%
Business
1 answer:
krek1111 [17]3 years ago
4 0

Answer:

The gross profit margin is B. 31.5%.

Explanation:

The gross profit is the profit earned by a company from trading and is also known as the trading profit. It is the difference between the Net sales revenue and the cost of goods sold. This profit does not take into account any other expenses either operating or non operating except for the cost of goods sold.

The net sales revenue = Gross sales revenue - Sales returns and allowances - sales discounts

Net sales revenue = 160000 - 19000 - 11000 = 130000

The cost of goods sold are $89000

The gross profit = 130000 - 89000 = $41000

The gross profit percentage = (Gross profit / net sales)  * 100

Gross profit margin = (41000 / 130000) * 100 = 31.5%

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To compete in today's market, how often should firms focus on marketing planning so that managers and executives have the core i
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6 0
3 years ago
Prior to the write off of a $500 customer account, Athena Company had the following account balances: Accounts receivable $19,60
Effectus [21]

Answer:

Net accounts receivable Before $18,600 and  After $18,600

Explanation:

solution

we know that here

net accounts receivable before write-off  

Accounts Receivable = $19,600  

and Allowance for doubtful debt = $1,000

so Net accounts receivable =  $19,600 - $1,000 =  $18,600

so

Journal Entry for write off is here    

Allowance for doubtful Accounts = $500

Accounts Receivable = $500

and

Net accounts receivable after write off is    

Accounts Receivable= $19,100

and

Allowance for doubtful debt= $500  

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Net accounts receivable = 8,600

so Net accounts receivable Before $18,600 and  After $18,600

6 0
3 years ago
Franklin, an employee of XYZ Publishing Company, hired Torrez, a freelance artist, to design the cover of a book, written by Che
MArishka [77]

Answer:

XYZ Publishing Company is the owner of the cover design.

Explanation:

When a business or even an individual hires someone to work for a specific job, the outcome of that job belongs to the employer.

For example, if I hire a carpenter and ask him to manufacture a specific type of chair that I like. Even f the carpenter contributed to the design of the chair, the chair and its design belong to me since I paid for it. Even if for some reason a lot of people like my chars and they ask the carpenter to manufacture more chairs, he would need my authorization to do it.

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2 years ago
Joel and Mike would like to start a new business selling a product new to the U.S., the Peraves Monotracer. Joel and Mike have d
nadezda [96]

<u>Full question:</u>

Joel and Mike would like to start a new business selling a product new to the U.S., the Peraves Monotracer. Joel and Mike have done a considerable amount of research on this product, and think it would be successful in the U.S. However, they are still concerned about the risk of a new venture and both would like to avoid losing any personal assets. They should organize their firm as a

Multiple Choice

corporation.

limited partnership.

general partnership.

sole proprietorship.

<u>Answer:</u>

They should organize their firm as a   corporation.

<u>Explanation:</u>

A corporation is a kind of business process that represents the business as a separate, legitimate entity managed by a group of directors identified as the board of directors.

An essential component of a corporation is confined liability, which indicates that shareholders may practice share in the profits by dividends and stock recognition but are not individually responsible for the company's shares. A corporation's purposes can be for-profit or not, as with donations. Still, the huge preponderance of corporations intends to afford a return for its shareholders.

8 0
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