In the given question GP ratio will be 53.4%
Here Net sales= 296000 $
Cost of goods sold= 138000 $
average inventory= 50000 $
Gross profit= Net sales- Cost of goods sold
=296000-138000
=158000
Formula for calculating Gross profit ratio is:
Gross profit/ Net sales *100
= 158000/296000*100
=53.4%
Gross profit ratio is a financial ratio which measures the performance and efficiency of a business by dividing its gross profit by the total net sales. The gross profit ratio can also be expressed in the form of percentage by multiplying the result by 100.
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Answer:provides a running balance of cost of goods available for sale and cost of goods sold.
Explanation:
Perpetual inventory system provides a running balance of cost of goods available for sale and cost of goods sold. Under this system, no purchases account is maintained because inventory account is directly debited with each purchase of merchandise. The expenses that are incurred to obtain merchandise inventory increase the cost of merchandise available for sale. These expenses are, therefore, also debited to inventory account. Examples of such expenses are freight-in and insurances etc. Each time the merchandise is sold, the related cost is transferred from inventory account to cost of goods sold account by debiting cost of goods sold and crediting inventory account.
The balance in inventory account at the end of an accounting period shows the cost of inventory in hand. The accuracy of this balance is periodically assured by a physical count – usually once a year. If a difference is found between the balance in inventory account and a physical count, it is corrected by making a suitable journal entry. The common reasons of such difference include inaccurate record keeping, normal shrinkage, and shoplifting etc.
As a result of a debit to the Retained earnings account, the balance would <u>decrease</u>.
<h3>What happens when Dividends are declared?</h3>
- They are taken from the profits of the business.
- These profits are represented by the retained earnings account.
Retained earnings are an equity account which means that they are credited when they increase. When they are debited therefore, they will see a decrease.
In conclusion, the balance would decrease.
Find out more on retained earnings at brainly.com/question/26251019.
Answer:
False.
Explanation:
Attribution theory suggests that leadership arises because of the existence of certain attributions of the persons like intelligence, oral skills or determination. In no way this approach tries to prioritize the objectives of an organization. Actually, explains certain dynamics in capital human which explains the leadership and how share and stakeholders understand the concept.
For federal income tax purposes, unless the firm indicates otherwise, the firm would be taxes as disregarded entity, meaning that Conrad will be taxed like a sole proprietorship.
<h3>What is a limited liability company?</h3>
A limited liability company is a type of private company. The partners can be one or more. The partners of a limited liability company have limited liabilites.
For tax purposes, if there is only one partner, a limited liability company is treated like a sole proprietorship and if there are more than one partners, the firm is treated like a partnership.
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