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Xelga [282]
3 years ago
15

At the beginning of 2018, England Dresses has an inventory of $75,000. However, management wants to reduce the amount of invento

ry on hand to $35,000 at December 31. If net sales for 2018 are forecast at $220,000 and the gross profit rate is expected to be 22%, compute the cost of the merchandise which management should expect to purchase during 2018. (Hint: First compute the expected cost of goods sold.)
Business
2 answers:
xenn [34]3 years ago
7 0

Answer:

The cost of the merchandise which management should expect to purchase during 2018: $131,600

Explanation:

Net sales for 2018 are forecast at $220,000 and the gross profit rate is expected to be 22%.

The expected Gross profit = 22% x $220,000 = $48,400

The expected Cost of goods sold = Net sales - The expected Gross profit = $220,000 - $48,400 = $171,600

The cost of the merchandise expected to purchase during 2018 = Inventory on hand at December 31 + The expected Cost of goods sold in 2018 - Inventory at the beginning of 2018 = $35,000 + $171,600 - $75,000 = $131,600

Klio2033 [76]3 years ago
3 0

Answer:

$136600

Explanation:

Given:

  • inventory of $75,000
  • amount of inventory on hand to $35,000
  • net sales for 2018 at $220,000
  • gross profit rate: 22%

We need to find the gross profit via the given information of net sales and gross profit rate

<=> gross profit = net sales*gross profit rate  

= $220,000* 22%

= $48,400

Moreover, Cost of goods sold is = sales - gross profit

<=>  Cost of goods sold = $220,000 -  $48,400 = $171,600

But Cost of goods sold = opening inventory + purchases - closing inventory

<=>    purchases = Cost of goods sold - opening inventory + closing inventory

= $171,600 - $75,000 + ($75,000 - $35,000)

= $136600

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adoni [48]

Answer: 0.51

Explanation:

Nominal rate = 1.85%

Inflation rate = 1.90%

Real rate of return = (1 + nominal rate / 1 +inflation rate) - 1

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Answer:

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Explanation:

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In that case, if a company counts with more suppliers and fraud is taking place in the organization, <em>they will have the excuse of making more payments so more funds can go out of the company</em>.

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If you need any clarification do comment. Cheers.

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