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olya-2409 [2.1K]
3 years ago
5

Dani's denim sells blue jeans. in 2017, dani's specialized in selling moderately priced jeans with a 25% markup. in 2018, dani's

management decided to sell more expensive designer jeans with a markup of 30% and eliminate the moderately priced options. if dani's denim has the same annual net sales in both years, how will dani's gross profit rate in 2018 differ from its gross profit rate in 2017?
Business
2 answers:
lianna [129]3 years ago
6 0

Answer:

If Dani's denim sells his jeans at a 30% markup his gross profit would grow by 20%

Explanation:

All right here we go. the markup is the amount of money a seller or producer ads to his or her product to achieve a net profit figure. In our case Dani's denim markup over the price of the good was an initial 25%, then they decided to increase the markup by 20% its original price. So, at least his gross profit is going to grow by 20%. You just need to make a calculation of the difference between the initial number, the second and how it changed.

stira [4]3 years ago
5 0

The markup percentage tells you how much money a business makes off each sale. If Dani is selling products with a higher mark up, this means she makes more money off each dollar of sales. In this case, you would expect Dani's profit margins to increase due to the increased markup percentage.

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The following information pertains to Blossom Company.
Dimas [21]

Answer:

A. Adjusted cash balance per bank $13,545

Adjusted cash balance per books $13,545

B. July 31

Dr Cash $2,520

Cr Accounts Receivable $2,520

July 31

Dr Bank service charge $63

Cr Cash $63

Explanation:

A. Preparation of a bank reconciliation at July 31, 2010

PHAROAH COMPANY

Bank Reconciliation

31-Jul-10

Cash Balance per bank statement $10,962

Add: Deposit in transit $4,473

$15,435

Less: Outstanding checks $1,890

Adjusted cash balance per bank $13,545

Cash balance per books $11,088

Add: Electronic fund transfer received $2,520

$13,608

less; Bank service charge $63

Adjusted cash balance per books $13,545

B. Preparation of the adjusting entries at July 31 on the books of Sunland Company.

July 31

Dr Cash $2,520

Cr Accounts Receivable $2,520

(To record electronic fund transfer received by bank)

July 31

Dr Bank service charge $63

Cr Cash $63

(To record bank service charges )

4 0
3 years ago
The December 31, 2015, balance sheet of Schism, Inc., showed long-term debt of $1,405,000, $141,000 in the common stock account,
spayn [35]

Answer: $589,500

Explanation:

The cash flow to the creditors in 2016 will be calculated as:

= $94,500 – ($1,590,000 - $1,405,000)

= $94,500 – $1,590,000 + $1,405,000

= -$90,500

For the shareholders, the cash flow in 2016 will be:

= $146,000 – [($151,000 + $2,960,000) – ($141,000 + $2,660,000)]

= -$164,000

Capital spending = $970,000

Cash flow due to the net working capital investment = -$126,000

OCF

= -$90,500 + (-$164,000) + $970,000 + (-$126,000)

= $589,500

3 0
3 years ago
Based on this income statement for Company XYZ for the year ending December 31, 2014, what adjustment would need to be made to N
RoseWind [281]

Answer:

a) Adjustment of (16,000) in the operating section.

Explanation:

While preparing the operating activities section of the cash flow statement, the net income, depreciation expense, amortization expense, loss on sale of an asset should be added and the profit on sale should be deducted

So there is the loss of $30,000 that should be added and the gain on sale should be deducted i.e. $46,000

So there is an adjustment of -$16,000 in the operating activities section

6 0
2 years ago
Read 2 more answers
Explain the differences between a partnership and a corporation
Radda [10]
A corporation is an independent legal entity owned by shareholders, in which the shareholders decide on how the company is run and who manages it. A partnership is a business in which two or more individuals share ownership.
8 0
3 years ago
Assuming a service level of 99% for all parts, what will be the impact on the total inventory investment if the number of wareho
nlexa [21]

Answer:

thanks for poitns 10 points

5 0
3 years ago
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