Watchdog over spending of funds

Gingerbread Inc. reported the following selected financial information for 2019: Net Sales $850,000 Gross Profit 450,000 Net Inc

tiny-mole [99]

Answer:

Accounts payable would be 20.42% of the balance sheet , when preparing a vertical analysis.

Explanation:

In the question it is told that Ginger bread is doing a vertical analysis, where when we have to calculate the percentage of certain item of the balance sheet , we will use formula -

( Balance sheet item / Total liability ) x 100

Given information - Accounts payable = $245,000

Total liabilities = $1200,000

Putting these values in formula -

= $245,000 / $1200,000 X 100

= .20416 X 100

= 20.416

= 20.42% ( APPROXIMATELY )

8 0

3 years ago

Zarasiato24, I couldn't give Brainliest so I am posting a new question so I can give you Brainliest

Orlov [11]

Answer:

im here

Explanation:

7 0

3 years ago

Given the following information for a retail company, what is the total cost of goods purchased for the period? Purchases discou

BigorU [14]

Answer: $298,800

Explanation:

Cost of goods purchased = Gross merchandise cost + Transportation-in (Carriage inwards) - Purchase discount - Purchase returns

= 304,000 + 6,700 - 3,500 - 8,400

= $298,800‬

8 0

3 years ago

Suppose the risk-free rate is 3.5%; on average, an AAA-rated corporate bond carries a credit spread of 0.3%, an A-rated corporat

KIM [24]

Answer and Explanation:

The answer given in the question are not correct. Following should be the choices:

A: 6.5%

B: 7.4%

C: 3.8%

D: 4.6%

The correct answer is A. 6.5 %

The reason is:

3.5% x 1.1% = 4.6%

3.5% + 3.9% = 7.4%

It has to be in between this which is,

4.6% < 6.5% < 7.4%

3 0

4 years ago

Wet for the Summer, Inc., manufactures filters for swimming pools. The company is deciding whether to implement a new technology

lubasha [3.4K]

Answer:

$131,283

Explanation:

Upstate Price = Present Value of Cash Flows if Demand is High / Value of Project = $14.3 million / $12.9 million = 1.10853

Downstate Price = Present Value of Cash Flows if Demand is Low / Value of Project = $8 million / $12.9 million = 0.62016

<em>Now, the computation of Probability of Demand being High</em>

Risk Free Rate = (Probability of Rise) * (U-1) + (1 - Probability of Rise) * (d-1)

0.06 = (Probability of Rise) * (1.10853 - 1) + (1 - Probability of Rise) * (0.62016 - 1)

0.06 = (Probability of Rise) * 0.10853 + (1 - Probability of Rise)*(-0.37984)

0.06 = 0.10853 Probability of Rise + 0.37984 Probability of Rise - 0.37984

0.06 + 0.37984 = 0.10853 Probability of Rise + 0.37984 Probability of Rise

0.43984 = 0.10853 + 0.37984 Probability of Rise

0.43984 = 0.48837 Probability of Rise

Probability of Rise = 0.43984 / 0.48837

Probability of Rise = 0.9006286217417122

Probability of Rise = 0.9006

Probability of Fall = 1 - 0.9006

Probability of Fall = 0.0994

Value of the option to abandon = Probability of Fall * (Selling Price - Cash Flow if Demand is Low)/(1 + Risk Free rate)

Value of the option to abandon = 0.0994 * ($9,400,000-$8,000,000) / (1 + 0.06)

Value of the option to abandon = 0.0994 * $1,400,000/1.06

Value of the option to abandon = $139,160 / 1.06

Value of the option to abandon = $131283.0188679245

Value of the option to abandon = $131,283

4 0

3 years ago