All categories

3 years ago

The following information was drawn from the annual reports of two companies.

Business

1 answer:

Semenov [28]3 years ago

5 0

Answer:

The answer is D.

Explanation:

Gross profit or margin is the profit a business generate after deducting cost of sales from its sales or revenue.

Gross profit or margin percentage is expressed as gross profit/sales(revenue) x 100

In the question, gross profit for company A is $400 and sales is $1000

Therefore, gross profit percentage is 400/1000 x 100

=40%

You might be interested in

On January 1, Year 1, the Starshina Company paid $25,000 for a photocopier with an estimated useful life of 4 years, and an esti

maksim [4K]

Answer: The amount of depreciation expense for Year 3 is $3,125.

Explanation: The double-declining method is otherwise known as the reducing balance method and is given by the formula below:

Double declining method = 2 X SLDP X BV

SLDP = straight-line depreciation percentage

BV = Book value

Under straight-line method, depreciation expense is (cost - residual value) / No of years = ($25,000 - $5,000) / 4 years = $5,000 yearly depreciation expense.

Under the double-declining method, 100%/4years = 25%, then 25% multiplied by 2 to give 50%

At Year 1, 50% X $25,000 = $12,500

At Year 2, 50% X $12,500 ($25,000 - $12,500) = $6,250

At Year 3, 50% X $6,250 ($12,500 - $6,250) = $3,125 (the depreciation expense would stop at this stage since the amount falls below the residual value).

7 0

3 years ago

The current asset section of Stibbe Pharmaceutical Company’s balance sheet included cash of $34,000 and accounts receivable of $

Alexxandr [17]

Answer:

Ending balance in inventory= $22,000

Current liabilities= $88,000

Explanation:

The current assets section of stibblr pharmaceutical company included cash of $34,000 and accounts receivables of $54,000

The company's current ratio is 2.5

The acid test ratio is 2.0

Acid test ratio = cash + account receivables /current liabilities

2.0= ($34,000+$54,000)/current liabilities

2.0= 88,000/current liabilities

Current liabilities = 88,000/2

= $44,000

Current ratio= cash + account account receivables + inventory /current liabilities

2.5= $34,000+$54,000 + inventory/$44,000

2.5= $88,000+Inventory /44,000

2.5×44,000= 88,000 + inventory

110,000= 88,000 + Inventory

Inventory = $110,000-88,000

= $22,000

Hence the current liabilities is $88,000 and inventory is $22,000

3 0

3 years ago

The second element of website design involves the traditional contextual elements. What do these contextual elements needed to b

Nostrana [21]

These contextual elements needed to be aligned with the target markets.

<h3>What is a website design? What are the elements of it?</h3>

Website design is a process of planning, organizing, capturing and conceptualizing the content online in an attractive manner.

The main elements of the website design are the design, interaction, visibility, content etc.

A good website design consist the excellent visual design.

Learn more about the website design here:-

brainly.com/question/13479505

#SPJ1

4 0

1 year ago

You are the manager of a firm that competes against four other firms by bidding for government contracts. While you believe your

hodyreva [135]

Answer: $1,000

Explanation:

Given Data;

Total government demand is Q = 800 -10P

marginal cost (Mc) = $50

contracted price (cp) = $70 per unit

Therefore;

Marginal Revenue ( MR ) = Marginal Cost ( MC)

Q = 800 -10P

800 - Q = 10P

Divide through by 10, where Q = 1

800/10 - 1/10 = P

80 - 0.1Q = P

Total Revenue(TR) = PQ

TR = 80 - 0.1Q

MR = MC

where MC = $50

80 - 0.1Q = 50

Collecting like terms

80 - 50 = 0.1Q

30 = 0.1 Q

Divide both side by 0.1

Q = 300

Price would be

P = 80 - 0.1Q

P = 80 - 0.1(300)

P = $50

MC = 40

Producing Q units

Total Cost (TC ) = 40 * ( 300 )

= $12,000

Total profit

= TR - TC

= ( P * Q ) - $12,000

= ( $50 * 300 ) - $12,000

= $15,000 - $12,000

= $3,000

Changes caused by regulations

Contracted price = $70

Quantity = 100Units

TT’ = ( P * Q ) - TC

= ( 70 * 100 ) - ( 50 * 100 )

= $7,000 - $5,000

= $2,000

TT - TT’ = $ ( 3000 - 2000 )

= $1,000

If legislation is passed all profit would reduce by $1,000

3 0

3 years ago

The more ________ used, the greater the leverage a company employs on behalf of its owners.

Talja [164]

The more debt used, the greater the leverage a company employs on behalf of its owners.

What is financial leverage?

Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing.

What is financial leverage example?

Example of financial leverage usage include using debt to buy a house, borrowing money from the bank to start a store and bonds issued by companies.

Learn more about financial leverage here:

brainly.com/question/24623107

#SPJ4

3 0

1 year ago