The differences between the various 'Money Supplies' (M1, M2, …) are base on A) The volume of the economy they make up C) Whethe
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Answer:
profit margin 7.77%
<em><u>Interpretation: </u></em> from evey dollar of sales the firm achieves almost 8 cent of net income
inventory turnover ratio 3.45
<em><u>Interpretation: </u></em>the inventory is sold 3 and a half times during the year
Explanation:
the profit margin is the quotient between net income and sales.
127,500 / 1,640,000 = 7.77%
the inventory turnover wil be the cost of good sold over the average inventory during the year
(312,500 + 257,500)/ 2 = 285,000
982,500 / 285,000 = 3,447368421
Answer:
Net Assets = Total Liabilities - Total Assets
Transaction # 1
Cash comes under Permanantly Restricted Net Assets
Hence -
Net Assets = $50,000 - $50,000 = $0
Transaction # 2
As there was no transaction took place hence nothing to be reported.
Transaction # 3
Inventory comes under supply & its temporarily restricted net assets
Hence
Net Assets = $1750 - $1750 = $0
Transaction # 4
Advertising comes under Permanently Restricted Net Assets
Hence
Net Assets = $0 - (-$5000) = $0 + $5000 = $5000
Transaction # 5
Office Equipments comes under Temporarily Restricted Net Assets
Hence
Net Assets = Total Liabilites - Total Assets
= $ 5000 - [ - $5000 + $10000 ]
= $ 5000 - $5000 = $0
Hence ending balance is
Unrestricted Net Asstes = $0
Temporarily Restricted Net Asstes = $0
Permanently Restrcited Net Asstes = $5000
Explanation:
See attached file for table
