Answer:
The unrealized profit is $6000
Explanation:
From the question,it is clear that Script still has in inventory at year end $30,000 worth of inventory from the $90,000 worth of purchased from Post,
invariably the unrealized profit recognizable should be to the tune of the unsold inventory.
In addition,the fact that mark up is 25% which that sales figure is made up of 100% cost plus 25% markup,hence sales is 125%.
unrealized profit=unsold inventory*markup/sales in percentage
unrealized profit =$30,000*25/125
unrealized profit is $6,000
To be able to make a gross margin of around $32000, the total sales must be around $32,324.
<h3>What is gross margin?</h3>
Gross margin is the total amount of cost benefitted by the sales revenue and the cost derived for the goods being sold. As per the information given above, the total sales calculation will be as $32,324.
Putting the value of total sales in the given formula, the gross margin is $32,000 when the cost of goods being sold has increased by around 1 percent.
Hence, the gross margin will be $32000 when the total sales will be $32,324 and the costs of sales increases by one percent.
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Answer:
$5549
Explanation:
Calculation to determine the cash flow to creditors during the year
Using this formula
Cash flow to creditors =Interest -New debt
Let plug in the formula
Cash flow to creditors=4235-(9525-10,839)
Cash flow to creditors=4235-(-1314)
Cash flow to creditors =$5549
Therefore the cash flow to creditors during the year is $5549