ANSWER: To calculate the gross profit for the month of August, Gibson will have to find out the sales in his company. Gibson had a opening stock of 200 units of products valuing $8 per unit. The total value of the stock available at the opening of the month is $8 x 200 units = $1,600. If he uses the average cost method to calculate the inventory cost, he will need the opening stock and the production done in the month of August. This will give him the figure which will show his entire stock which were available for sale in the month.
Let's assume the entire stock produced in the month of August to be 'x', so the total stock available for sale was '$1,600+x'. This amount needs to be subtracted by the closing stock of the month to get the actual value of sales that has happened during the month of August. So, dividing the actual value of sales by the production cost of the sold number of units will give Gibson the gross profit for the month of August.
Answer:
C) Decrease the acid-test ratio
Explanation:
The quick ratio is also called acid test ratio. It is a liquidity ratio that measures level of liquid assets of a business.
That is the amount of cash or near cash assets it has to settle it's current debt.
Mathematically
Quick ratio = (Current assets - Inventory) ÷ Current liabilities
If cash (current asset) is used to buy Inventory. Cash will reduce and inventory will increase.
The value of (Current asset - Inventory) reduces.
As the numerator in the ratio reduces, the quick ratio also reduces.
Answer:
<u>Sustainable</u>
Explanation:
Sustainable development in simple terms refers to the development which can be sustained or carried forward for a long period of time.
It refers to satisfying and meeting the needs of the current generation without jeopardizing the needs and resource availability for the future generations.
Economic development refers to the rise in per capita income while sustainable development incorporates economic as well as human development.
Such development aims at judicious usage of resources , equitable distribution of resources and reduction in wastage.
When buying or selling a futures contract, the trader commits what amount of funds the amount of the initial margin. A futures contract is a legal agreement to buy or sell assets, mainly commodities, at a set price but it will be delivered and paid for later. Based on the definition of a futures contract, the trader will have to commit to the initial amount that was set to be traded when the legal agreement was made.
Answer:
$800,000
Explanation:
The calculation of book value of the assets of the cosmetics component is given below:-
Gain on Sale of the Assets = Income from Operation of a Discontinued Components - Income from Operations
= $620,000 - $300,000
= $320,000
Gain/Loss on Sale of Asset = Sale Value of Assets - Book Value of Assets
= $1,120,000 - $320,000
= $800,000
