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Serhud [2]
3 years ago
8

At the beginning of 2018, England Dresses has an inventory of $140,000. However, management wants to reduce the amount of invent

ory on hand to $80,000 at December 31. If net sales for 2018 are forecast at $400,000 and the gross profit rate is expected to be 40%, compute the cost of the merchandise which management should expect to purchase during 2018. (Hint: First compute the expected cost of goods sold.)
Business
1 answer:
Bad White [126]3 years ago
7 0

Answer:

purchases = 160000

Explanation:

given data

beginning inventory = $140,000

amount of inventory on hand = $80,000

net sales = $400,000

gross profit rate = 40%

solution

we first Computation of cost of goods sold  hat is

Gross profit rate = \frac{gross profit}{net sales} × 100

= \frac{gross profit}{400000} = = \frac{40}{100}

= 100 Gross profit = 16000000

so

Gross profit = 160000

and

Cost of goods sold is = sales - gross profit

so

Cost of goods sold = 400000 - 160000

Cost of goods sold = 240000

and

Cost of goods sold = opening inventory + purchases - closing inventory  

so put here value

240000 = 140000 + purchases - 60000

so purchases = 160000

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Answer:

The correct answer is option b.

Explanation:

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He gets a salary every two weeks.  

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The shoe-leather cost can be defined as the cost of time and effort made to prevent the cash holdings from losing their value.

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Using the information provided about marketing and advertising law, determine which of the following would be a violation of thi
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Laura is using rent-to-own store to purchase a computer valued at $1,000. she is paying $25 per week for 104 weeks(2 years). why
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Quien es el equipo con más champions​
Black_prince [1.1K]

Responder:

Real Madrid

Explicación:

El Real Madrid ha ganado la Liga de Campeones un récord asombroso 13 veces. (Todo lo que hice fue buscar en Google "quién es el equipo con más campeones" y eso es lo que obtuve) Espero que esto ayude.

6 0
3 years ago
Jamesway Corporation has two separate divisions that operate as profit centers. The following information is available for the m
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Answer:

White Division Gross Profit  = $72,200

Grey Division Gross Profit =  $247,700

Explanation:

                                                     White Division    Grey division

Sales (net)                                      $270,000            $540,000

Less: Cost of goods sold              <u> $135,000  </u>          <u>$202,500</u>

Gross Margin                                 $135,000             $337,500

Less: Salary Expenses                   $37,800              $64,800

Rent                                                 <u>$25,000</u>              <u>$25,000</u>

Gross Profit                                   <u> $72,200 </u>             <u>$247,700</u>

The White Division occupies 25,000 square feet in the plant. The Grey Division occupies 25,000 square feet. Hence, the rent expenses will be shared equally. Rent = $50,000 hence, both division will pay $25,000 each              for rent

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2 years ago
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