Answer:
Gross profit ratio = 29.5%
Inventory turnover ratio = 6.16 times
Explanation:
(a) Target uses the retail inventory method to account for the majority of it's inventory and the related cost of sales. in this method, inventory is stated at cost using the last in first out (LIFO) method as determined by applying a cost to retail ratio to each merchandise groupings ending retail value.
(b) The cost of inventory includes
1. The amount T pays to it's supplier to acquire inventory.
2. freight cost incurred in connection with the delivery of products to it's distribution centres and store.
3. Import cost reduced by vendor income and cash discounts.
(c) Gross profit ratio = 21788/73785
= 29.5%
Inventory turnover ratio = 51997/(8601+8282)/2
= 6.16 times
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Answer and Explanation:
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Answer:
The correct answer is Provide info that people want.
Explanation:
Externalities are caused when the production or consumption of a good or service has a cascading effect that is not purely reflected in its price and therefore there is no appropriate compensation to be paid for it. If the price does not include the true costs of the good or service there will be a market failure. Importantly, externalities can be positive or negative. To prevent refusals, governments must add certain taxes to assets to cover their social cost.
Answer:
270,000 units
Explanation:
Given that:
Beginning Inventory for finished goods: 31,000
Ending Inventory for finished goods : 41,000
Beginning Inventory for raw materials: 61000
Ending Inventory for raw materials: 51,000
Units planned to be sold: 260,000
We compute the produced finished goods = Ending inventory + Units sold − Beginning inventory
= 41,000 + 260,000 − 31,000 = 270,000
The number of units the company would have to manufacture during the year would be 270,000
