Southeast Airlines had pretax earnings of $30 million, including a gain on disposal of a discontinued operation of $5 million. T
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Answer:
b. $60,000
Explanation:
Implicit cost is the cost which is not shown as a cost in the statement of income.
As it includes basically the opportunity cost.
This will include:
Salary foregone = $45,000
Entrepreneurial skills income = $5,000
Interest on bonds foregone = $100,000 10% = $10,000
Thus, total implicit cost = $45,000 + $5,000 + $10,000 = $60,000
Answer:
2020
Inventory TO 2.2
Days on Inventory 166
Gross profit margin: 42.8%
2021
Inventory TO 2.1
Days on Inventory 174
Gross profit margin: 35.6%
Explanation:
Inventory $570,000 $580,000 $330,000
Net sales 1,875,000 1,750,000 1,350,000
Cost of goods sold 1,207,500 1,001,000 939,000
2020:
where:
COGS 1,001,000
beginning 330,000
ending 580,000
Inventory 455000
Inventory TO 2.2
Days on Inventory 166
Gross profit margin:
sales less COGS divided over sales:
(1,750,000 - 1,001,000) / 1,750,000 = 0.428 = 42.8
2021
where:
COGS 1,207,500
beginning 580,000
ending 570,000
Inventory 575000
Inventory TO 2.1
Days on Inventory 174
Gross profit margin:
sales less COGS divided over sales:
(1,875,000 - 1,207,500) / 1,875,000 = 0,356 = 35.6%