Answer:
profit margin = 23.33%
Explanation:
profit margin = net profit / net sales
- net profit = $2,800
- net sales = $12,000
profit margin = $2,800 / $12,000 = 0.233333 = 23.33%
The profit margin is a profitability ratio used to compare how many cents different companies are able to make from selling $1. Different companies have different sales levels, but we can group companies by industries and then compare them in order to determine which ones are more efficient at generating income. E.g. Company A sells $100 million but only makes $2 million in profits per year (PM = 2%), and it is much less efficient than Company B that sells $10 million and makes $1 in profits (PM = 10%). Company A's costs are too high compared to Company B's costs.
Answer:
Budgeted purchases = $71000
Explanation:
Below is the given values:
Direct material for the production = $70000
Ending raw material inventory = $3000
Beginning raw material = $2000
Budgeted purchases = Direct material for the production + Ending raw material - Beginning raw material
Budgeted purchases = 70000 + 3000 - 2000
Budgeted purchases = $71000
Answer:
cost effectiveness
Explanation:
In simple words, cost effectiveness refers to the attribute of some data or report in which the benefits of operations comes more than the cost leading to overall profit situation of the firm. As per the accounting standards, accounting information should be neutral, relevant and complete but cost effectiveness traits sometimes leads to some unethical practices like misleading information or misrepresentation.
Thus, cost effectiveness can be seen as a constraint on the accounting information as it works as an incentive to mislead the stakeholders or otherwise it could lead to damage to the firm in many ways.
Answer: $160,000
Explanation: Retained earnings can be defined as the amount pf earnings left with the company after taking into consideration all tyoes of dividends and taxes.
formula :-
Retained earnings = previous retained earnings + net income - dividends to equity holders - dividends to preference holders
thus,
Retained earnings = $140,000 + $65,000 - $10,000 - $35,000
= $160,000
Answer:
Explanation:
a business transaction is entered into two accounts because of the rules of credits and debits. every transaction affects at least two different accounts. So you must debit one account and credit another in order to satisfy the accounting equation.
