Answer:
The asset turnover is 3.66 times
Explanation:
Asset Turnover is the efficiency rate of the assets of the business to generate revenue for the business. It shows how efficiently the assets of the business are used to generate revenue for the business.
Formula for Asset turnover is as follow
Asset Turnover = Net sales / Average total assets
Asset Turnover = $5,490,000 / $1,500,000
Asset Turnover = 3.66 times
It means that the sale for the period is generated to 3.66 times of average total asset of the business.
Answer:
A. A only
Explanation:
U.S. Generally Accepted Accounting Principles (GAAP) does not allow property, plant, and equipment to be written up or revalued. If the fair value of PP&E falls below the book value and the amount is material then a company must write down the asset to fair value.
Since under US GAAP, once PPE is written, it can not be reversed. as Company B is indicated to have reversed the write down while company A did not. It therefore means that Company A only is reporting under US GAAP.
Answer: initial principal
Explanation:
Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.
Answer:
The COGS for the June 1st sale is $17 per unit, and the COGS for the August 27th sale is $20 per unit.
Explanation:
<u>Date</u> <u>Number of units</u> <u>Unit balance</u> <u>Unit cost</u> <u>Average cost</u>
May 7 40 40 $17 $17
June 1 (20) 20 $17
July 28 30 50 $22 $20
August 27 (30) 20 $20
The average COGS after the purchase on July 28 = [(20 x $17) + (30 x $22)] / 50 = ($340 + $660) / 50 = $20
Answer: Cost of Goods sold
Explanation:
Common size analysis refers to making all entries in the income statement, a percentage of sales for that year.
Current Year Prior Year
Sales 100% 100%
Cost of Goods sold 75.7% 46.5%
Gross Profit 24.3% 53.5%
Operating expenses 17.3% 35%
Net Income 7.0% 18.5%
<em>Looking at the percentages above, one can see that the COGS increased the most from the previous year by going from 46.5% to 75.7% representing an increase of 29.2%.</em>
<em>This had the most impact on Net income as it substantially reduced Gross profit. </em>
