Answer:
Gross Profit $ 23,253
Explanation:
Stubbs Company
Perpetual Inventory Method
Date Purchases Unit Price Total Cost
January 1, 1,400 units $12.00 $16,800
January 10, 1,600 units $7.25 $11,600
Total 3000 28,400
Weighted Average Cost= 28,400/3000= $ 9.467
Sales 1,600 units at$24.00 =$38,400
COGS 1600 units at $ 9.467 = $ 15,147
Gross Profit $ 23,253
The amount of gross margin reported on the income statement will be: $ 23,253
Answer:
d. 8.18 million
MVA is $380 million
Explanation:
Net residual Income is the value of the firm. All the preferred and required / agreed return on any the funding availed is deducted from the net earning after profit to make the value for the firm. The income purely associated to the firm is considered as the value of the firm.
Earning Before Interest and tax = Net Sales - Operating costs = $80 million - $52 million = $28 million
Net Operating profit after tax = $28 x ( 1 - 40% ) = $16.8 million
Return on investor-supplied capital = $115 million x 7.5% = $8.625 million
Value created for the firm = Net operating profit after tax - Return on investor-supplied capital = $16.8 - $8.625 = $8.175 million = $8.18 million
MVA is the net of market capitalization and stockholders equity of the firm. It is the difference of market value and book value of equity of a firm.
MVA = ( Outstanding shares x Market value of shares ) - Book value od the equity = ( 20 million shares x $25 per share ) - $120 million = $500 million - $120 million = $380 million
Conclusion. A conclusion is used to summarize everything covered during the report. Essential. A glossary is not necessary, a biography is about yourself not the topic you are reporting/researching. And an executive summary is not needed when you have an introduction and a conclusion. Therefor conclusion is the correct answer.
Operating expenses are taken from the normal business operation such as administrative or selling expense. It is part of the operating cost. Markup is defined as the amount added to the cost of goods to fix a selling price. So, to answer the question above: True.