1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ozzi
3 years ago
10

Heller Company offers an unconditional return policy to its customers. During the current period, the company records total sale

s of $850,000, with a cost of merchandise to Heller of $340,000. Based on past experience, Heller Company expects 4% of sales to be returned. How much gross profit will Heller Company recognize for the current period?
Business
1 answer:
OLga [1]3 years ago
5 0

Answer:

$489,600

Explanation:

Given that,

Total sales = $850,000,

Cost of merchandise to Heller = $340,000

Heller Company expects 4% of sales to be returned

Sales:

= Total sales - Sales returned

= $850,000 - (4% of $850,000)

= $816,000

Cost of goods sold:

= cost of merchandise - (4% of cost of merchandise)

= $340,000 - (4% of $340,000)

= $326,400

Gross Profit:

= Sales - Cost of Good Sold

= $816,000 - $326,400

= $489,600

Therefore, the Heller company will recognize $489,600 of gross profit in the current period.

You might be interested in
Trout Lumber Yard has a current accounts receivable balance of $447,516. Credit sales for the year just ended were $8,105,305. a
musickatia [10]

Answer:

Trout Lumber Yard

a. The receivables turnover = Net Credit Sales/Average Receivables

= $8,105,305/$447,516

= 18 times per year

b. The Days' Sales in Receivables = Average Receivables/Credit Sales * 365

= $447,516/$8,105,305 * 365

= 20.15 days

c. On the average, it took 20.15 days (365/18.11) for credit customers to pay off their accounts during the past year.

Explanation:

a) Data and Calculations:

Accounts receivable balance = $447,516

Credit sales for the year just ended = $8,105,305

The receivables turnover = Net Credit Sales/Average Receivables

= $8,105,305/$447,516

= 18.11 times

The Days' Sales in Receivables = Average Receivables/Credit Sales * 365

= $447,516/$8,105,305 * 365

= 20.15 days

8 0
2 years ago
The probability that Mary will win a game is 0.03, so the probability that she will not win is 0.97. If Mary wins, she will be g
valkas [14]

Answer:

Expected value of X = -11.09

Explanation:

Expected profit:

= Probability of winning × Amount she wins

= 0.03 × $180  

= 5.4

Expected loss:

= Probability of loosing × Amount she paid

= 0.97 × $17

= 16.49

Let X be amount of money Mary wins or loses.

E(X) = Expected profit - Expected loss

= 5.4 - 16.49

= -11.09

Expected value of X = -11.09

That is expected value of loss of $11.09

4 0
3 years ago
Beranek Corp has $695,000 of assets (which equal total invested capital), and it uses no debt - it is financed only with common
lesya692 [45]

Answer:

$278,000

Explanation:

Data provided:

Total invested capital or assets = $695,000

Total debt to total capital ratio = 40%

now,

\frac{\textup{Total debt}}{\textup{Total capital}} = \frac{\textup{40}}{\textup{100}}

or

Total debt = 0.4 × Total capital

or

Total debt = 0.4 × $695,000

or

Total debt = $278,000

Hence,

The firm must borrow $278,000 to achieve the desired ratio

3 0
3 years ago
Firms require capital to invest in productive opportunities. The best firms with the most profitable opportunities can attract c
Arturiano [62]

Answer:

Interest rate

Explanation:

Firms require capital to invest in productive opportunities. The best firms with the most profitable opportunities can attract capital away from inefficient firms with less profitable opportunities. Investors supply firms with capital at a cost called the <u>Interest rate</u>. The interest rate that investors require is determined by several factors, including the availability of production opportunities, the time preference for current consumption, risk, and inflation.

7 0
3 years ago
Rebecca began taking
Naily [24]

Answer:

be more specific

Explanation:

6 0
3 years ago
Other questions:
  • Which type of promotion do many people consider more credible because it is less biased?
    9·1 answer
  • Why is efficiency and innovation important to a society
    5·1 answer
  • What will be the inventory Cost that was valued at 286000 valued at<br>.And obsolete cost is 8400​
    14·1 answer
  • one markeitng action that can be taken to sell a single product or service to muylpele market segments is to
    6·1 answer
  • Possible reasons for additional students accommodation on a project proposal ​
    5·1 answer
  • South Carolina Industrial Products' bonds have a 7.00 percent coupon and pay interest annually. The face value is $1,000 and the
    9·1 answer
  • Phelps, Inc. had assets of $87,938, liabilities of $19,174, and 13,190 shares of outstanding common stock at December 31, 2017.
    9·1 answer
  • The Buck Store is considering a project that will require additional inventory of $185,000 and will increase accounts payable by
    5·1 answer
  • From June to the end of September, Jennifer wants to save at least $1,500. Her monthly expenses are $600. Jennifer saves whateve
    11·1 answer
  • Which cash flows should be included in the Investing Section of the statement of cash flows under US GAAP?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!