According to Redpath and Greg Urban, what is the threshold amount for determing if a substantial basis adjusment is mandatory?
2 answers:
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Answer:
19.8%; 16.8%
Explanation:
In 2016:
Common size percentages for operating expenses:
= (Operating expenses ÷ Net sales) × 100
= (65,960 ÷ $333,800) × 100
= 0.198 × 100
= 19.8%
In 2017:
Common size percentages for operating expenses:
= (Operating expenses ÷ Net sales) × 100
= ($68,440 ÷ $407,400) × 100
= 0.1680 × 100
= 16.8%
Note:
Table is missing in this question, so i have attached the missing table.
Answer:
Season:
Fall 262 units
Winter 391 units
Spring 178 units
Summer 569 units
Explanation:
First, we calculate the average for each season.
Then, we cross multiply for 1,400 radials to get the values:
Now we cross multiply to get the expected sales for Year 3:
225 / 1200 * 1400 = 262
335/ 1200 * 1400 = 391
152.5/ 1200 * 1400 = 178
487.5/ 1200 * 1400 = 569