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mihalych1998 [28]
3 years ago
8

The following data is from the income statement of Ralston Company: Revenue$36,000 Cost of goods sold (14,400) Operating expense

s (16,000) Net income$5,600 What is the company's gross margin percentage
Business
1 answer:
nexus9112 [7]3 years ago
5 0

Answer:

60%

Explanation:

Gross Margin Percentage =

[(Total Revenue - Cost of Goods Sold) / Total Revenue] x 100

Therefore, when the figures are substituted into the formula, we obtain:

[(36000-14400) / 36000] x 100 = 60%

In other words, gross margin is basically Gross Profit / Total Revenue expresses as a percentage.

Gross profit is a monetary value whilst gross margin is a percentage value. Both help to determine the amount available to be used to pay off other expenses such electricity, labour and rent. After which the net profit can be obtained.

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Examples of services are _____.<br><br> dentists<br> childcare<br> newspapers<br> personal computers
motikmotik

Personal computers

Sentence:

Examples of services are personal computers.

6 0
3 years ago
Steinberg Corporation and Dietrich Corporation are identical companies except that Dietrich is more levered. Both companies will
valentina_108 [34]

Answer:

a-1.

Steinberg's debt:

Steinberg's equity:

a-2.

Dietrich's debt:

Dietrich's equity:

b. Disagree as the values of the two companies are the same ( please see below Explanation for further clarification)

Explanation:

It is clear to determine that the value of debt and equity of the two firms is the present value of cash flow received in 1 year, discounted at 12%.

a-1.

In one year:

- Debt holder of Steinberg will receive $910,000 regardless of its EBIT. -=> Thus, Steinberg's debt present value = 910,000 / 1.12 = $812,500

- Given the probability of expansion and recession, Steinberg's shareholder will receive the amount equal EBIT -  amount paid to its debt holders: 0.8 x (3,700,000 - 910,000) + 0.2 x (1,100,000-910,000) = $2,270,000.

=> Thus, Steinberg's equity present value = $2,270,000/ 1.12 = $2,026,786

=> Value of Steinberg = D+E = 812,500 + 2,026,786 = $2,839,286 ( note: no tax applied)

a-2.

In one year:

- Debt holder of Dietrich will receive $1,200,000 when the business expands while only $1,100,000 when the business goes into recession (i.e business loss is 100,000):  0.8 x 1,200,000 + 0.2 x 1,100,000 = $1,180,000

=> Thus, Dietrich's debt present value = 1,180,000 / 1.12 = $1,053,571

- Given the probability of expansion and recession, Dietrich's shareholder will receive the amount equal EBIT -  amount paid to its debt holders: 0.8 x (3,700,000 - 1,200,000) + 0.2 x (1,100,000-1,100,000) = $2,000,000.

=> Thus, Dietrich's equity present value = 2,000,000 / 1.12 = $1,785,714

=> Value of Steinberg = D+E =$1,053,571+$1,785,714  = $2,839,286( note: no tax applied)

a-3.

From the calculation, it is clear that the values of the two companies are the same.

6 0
3 years ago
A) Kasapreko Company Limited is a wholly Ghanaian-owned company with branches in Nigeria, South Africa and Germany. With relevan
s2008m [1.1K]

Answer:

I think b because they knew they were gonna get caught

7 0
3 years ago
The following information relates to last year's operations at the Legumes Division of Gervani Corporation:
yanalaym [24]

Answer:

The Legume Division's net operating income last year was d. $45,000

Explanation:

Turnover (on operating assets) = Total Sales/ Operating assets

From the formula,

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Return on investment (ROI) is calculated by using following formula:

ROI = Net income/Total investment

Net Income = ROI x Total investment

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7 0
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In February, Pedro, the manager of a pool supply and cleaning company, is looking at the upcoming need for more workers to handl
Mademuasel [1]

Planning is the management process that Pedro is using.

Answer: Option A.

<u>Explanation:</u>

Management process is the process that has certain steps and procedures in it that a business organisation needs to follow to achieve the goals of the organisation and for the betterment of the business organisation for which the employers are working.

The various steps and procedures of the management process are planning, organizing, managing, leading, controlling and so on. Planning is the management process in which all the resources needed to achieve the organisational goals are planned and there is proper thinking before acting to achieve the goals.

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3 years ago
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