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4 years ago

When a firm's sales revenues are greater than its expenses, the firm has a:

1 answer:

5 0

When a firm's sales revenues are greater than its expenses, the firm has a positive cash flow. If the situation was opposite, then it would have a negative cash flow.

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How was everyone's day?

RUDIKE [14]

It was good, I just despise homework

3 0

3 years ago

Read 2 more answers

Presented below are selected account balances for Tamarisk Co. as of December 31, 2020.

Svetradugi [14.3K]

Answer and Explanation:

The closing entries for the following accounts are presented below:

1. Sales Revenue A/c Dr $408,750

To Income Summary $408,750

(Being revenue account closed)

2. Income summary A/c Dr $323,830

To Cost of Goods Sold $229,017

To Sales Returns and Allowances $11,908

To Sales Discounts $15,070

To Selling Expenses $16,133

To Administrative Expenses $37,525

To Income Tax Expense $30,300

(Being expenses accounts are closed)

3. Income summary A/c Dr $84,930 ( $408,750 - $323,830)

To Retained earning $84,930

(Being the difference is credited to retained earning)

4. Retained earnings A/c Dr $17,873

To Dividend A/c $17,873

(Being dividend account is closed)

7 0

3 years ago

One of the most challenging tasks for any firm, including In Fine Fettle, is determining how much to spend on promotion. Four ba

Montano1993 [528]

Answer:

A) the affordable method,

In Fine Fettle's management reviews what it is trying to achieve with promotion and sets the budget based on anticipated expenses.

B) the percentage-of-sales method,

In Fine Fettle's management reviews its forecasted sales volume for the turmeric bar and sets is promotional budget at $150,000.

C) the competitive-parity method,

In Fine Fettle looks at its competitors and finds that their average promotional spending ranges from $100,000 to $250,000. Therefore, the promotional budget is set at $200,000.

D) the objective-and-task method.

In Fine Fettle's management reviews its revenues and expenses and allocates promotional spending based on what management believes it has to spend

Explanation:

A) is deciding the promotion expense considering how much can afford based on the expenses budget

B) determninate the promotion based on a percentage of expected sales

C) the company will look at their competitors promotion expense and try to keep up with that level to avoid being left behind

D) management will determinate on a monthly/ weekly basis where and how much to promote

8 0

4 years ago

Cool Logos buys logo-imprinted merchandise and then sells it to university bookstores. Sales are expected to be $ 2 comma 003 c

Scrat [10]

Answer:

Cost of Goods Sold Budget

October November

Cost of Goods Sold $1,568,000 $1,664,600

Inventory Budget

October November

Total $752,920 $772,800

Purchase Budget

October November

Budgeted Purchases $2,259,320 $2,397,880

Explanation:

Cost of Goods Sold Budget

Gross Profit Margin = 30% therefore Markup is 70%

October November December

Sales $2,240,000 $2,378,000 $2,520,000

Cost of Goods Sold (70%) $1,568,000 $1,664,600 $1,764, 000

Inventory Budget

October November

Base Amount $420,000 $420,000

Based on Sales (20%) $332,920 $352,800

Total $752,920 $772,800

Purchase Budget

October November

Budgeted Sales $2,240,000 $2,378,000

Add Budgeted Closing Inventory $752,920 $772,800

Total Purchases Needed $2,992,920 $3,150,800

Less Budgeted Opening Inventory ($733,600) ($752,920)

Budgeted Purchases $2,259,320 $2,397,880

September Closing Stock is October`s Opening Stock

Therefore September Closing Stock = $420,000 + $1,568,000 × 20%

= $733,600

6 0

3 years ago

A store that offers a wide variety of shoes for men, women, and children would most likely be considered a(n):

Kisachek [45]

Answer:

The correct answer is: Speciality retailer.

Explanation:

Speciality retailers are stores that operate similarly to regular retailers offering products manufactured by different companies but the focus their attention on a specific niche in the market. Clothing, shoes, books, school supplies, and technology retailers are examples of these types of stores.

4 0

3 years ago

Read 2 more answers