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aksik [14]
3 years ago
11

Sales revenue $900,000 Cost of goods sold 625,000 Sales discounts 30,000 Sales returns and allowances 15,000 Operating expenses

99,000 Interest revenue 6,500 What is the gross profit?
A. $130,000
B. $120,000
C. $230,000
D. $300,000
Business
2 answers:
faust18 [17]3 years ago
8 0

Answer:

The gross profit is: C.$230,000.

Explanation:

The gross profit is determined by deducting Cost of good sold from Net sales.

Net Sales is net amount of sales in the period, that is, after taken away Sales Discounts, Sales returns and allowances from Gross Sales. So, we have Net Sales calculated as $900,000 - $30,000 - $15,000 = $855,000.

As a result, Gross profit = Net Sales - Cost of good sold = $855,000 - $625,000 = $230,000.

Operating expenses and Interest revenue is irrelevant in Gross profit determination. These expense item and income item will be taken into account when calculating Net Profit.

Thus, the answer is C.$230,000.

allsm [11]3 years ago
4 0

Answer:

Correct answer is C, $230,000

Explanation:

Gross profit is the amount we derived after we deduct cost of goods sold to the net sales revenue.

First, we must compute the Net sales revenue.

Sales Revenue                          $900,000

Less:

   Sales discounts                        $30,000

   Sales returns and allowances <u>$15,000</u>

Net Sales                                   $855,000

Next, We deduct cost of goods sold to net sales revenue in order for us to arrive the gross profit of the period.

Net sales                              $855,000

Less

Cost of goods sold              <u> $625,000</u>

GROSS PROFIT MARGIN     $230,000

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Pompeii, Inc., has sales of $53,500, costs of $24,400, depreciation expense of $2,600, and interest expense of $2,350. If the ta
Rom4ik [11]

Answer:

$23,062.50

Explanation:

The computation of the operating cash flow is shown below:

= EBIT + Depreciation - Income tax expense  + interest expense

where,  

EBIT = Sales - cost of good sold - depreciation expense  - interest expense

= $53,500 - $24,400 - $2,600 - $2,350

= $24,150

And, the income tax expense would be

= (Sales - cost of good sold - depreciation expense  - interest expense) × tax rate

= ($53,500 - $24,400 - $2,600 - $2,350) × 25%

= $24,150 × 25%

= $6,037.50

So, the OCF would be

= $24,150 + $2,600 - $6,037.50 + $2,350

= $23,062.50

6 0
3 years ago
The following data pertain to Dakota Division’s most recent year of operations. Income $ 4,950,000 Sales revenue 57,500,000 Aver
Kipish [7]

Answer:

Dakota Division's sales margin, capital turnover, and return on investment for the year is 8.61% , 575% and 49.5% respectively

Explanation:

The computations are shown below:

Sales margin:

= Operating Income ÷ Sales revenue × 100

= $4,950,000 ÷ $57,500,000 × 100

= 8.61%

Capital Turnover:

= Sales revenue ÷ Average invested capital × 100

= $57,500,000 ÷ $10,000,000  × 100

= 575% or 5 times

Return on investment:

= Operating Income ÷ Average invested capital  × 100

= $4,950,000 ÷ $10,000,000 × 100

= 49.5%

3 0
3 years ago
A company is expected to have free cash flows of $0.75 million next year. The weighted average cost of capital is WACC = 10.5%,
Vesnalui [34]

Answer:

The stock's current intrinsic price is c. $18.29

Explanation:

Hi, by definition, the intrinsic value of a stock is defined by the present value of its future free cash flows, in our case, for the next year it will be $0.75 million and it will grow at a 6.4% rate, every year, "forever".

SInce there are $2 million in short term investment and $2 million in debt, both amounts cancel out each other therefore, all we have to do is to bring to present value the future free cash flows, as follows.

PresentValue=\frac{FCF(1)}{WACC-g}

So the value of all the outstanding share of the company is:

PresentValue=\frac{750,000}{0.105-0.064} =18,292,683

Since there are 1 million shares, each one is worth $18,292,683/1,000,000= $18.29. So the answer is c.

Best of luck.

7 0
3 years ago
The primary purpose of _________ behaviors is to enhance employees’ skills and to create positive work relationships among cowor
LiRa [457]

Answer:

relationship-oriented

Explanation:

The relationship oriented refers to building a good relation with the employees so that they gets the motivation that results the improvement in their work by giving their best effort to complete a task

Here, to enhance the employees skills and building a positive relation among coworkers represents the relationship-oriented and the same is to be considered

5 0
3 years ago
Pecan acquires Southern in an acquisition reported as a merger. The acquisition results in $50 million in goodwill. The acquisit
azamat

Answer:

Dr Earnings contingency liability $800,000

Cr Goodwill $800,000

Explanation:

Based on the information given the appropiate journal entry to record the new information includes a credit of $800,000 to:Dr Earnings contingency liability $800,000 and Cr Goodwill $800,000 reason been that the acquisition cost is lesser.

Dr Earnings contingency liability $800,000

Cr Goodwill $800,000

3 0
3 years ago
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