Answer:
2016 2015 2014 2013
gross profit% 26.29% 22.58% 22.45% 22.41%
Inventory turnover 6.58 7.64 7.6 7.94
cost of material % 59.89% 51.76% 89.82% 51.10
b. gross% has increased this may be due to a high demand, and intense marketing.
inventory turnover has decreased this may be due to new competition, or introduced product(new product)
cost of material purchased % it has increased in 2016, this may be due to increased production and effective use of material.
Explanation:
gross profit % =gross profit/ sales
gross profit = sales less cost of sales
inventory turnover = cost of sales / average inventory
average inventory = (opening inventory + closing inventory )/2
cost of material purchased/ cost of finished goods
finished goods = cost of sales + closing - opening goods
- Katherine had to rush to the bank every few months to borrow more money. She didn't really talk to her banker about her financial situation because she had no trouble getting larger loans. You see, she was always on time with her payments. Katherine always took trade discounts to save money on her purchases. That is, she paid all of her bills within 10 days in order to save the 2% discount offered by her suppliers for paying so quickly.
- Katherine's products were mostly purchased on credit. They'd buy a few lamps and a pot, and Katherine would let them pay overtime. Some were extremely slow to pay her, taking six months or more.
- Katherine noticed a small drop in her business after three years. The local economy was struggling, and many people were losing their jobs. Nonetheless, Katherine's business remained steady. Katherine received a phone call from the bank one day, informing her that she was behind on her payments. She explained that she had been so preoccupied that she had missed the bills. The issue was that Katherine did not have enough money to pay the bank. She frantically called several customers for payment, but none of them could pay her. Katherine had a classic cash flow problem.
<h3>How is it possible to have high sales and high profits and run out of cash while running a business?</h3>
It is entirely possible if you have a high level of accounts receivables and inventory and a low level of accounts payables. A sale is recorded when an invoice is raised, and a shipment is delivered; this does not always imply that you received cash and that it is recorded in your accounts receivable. Similarly, if you keep a lot of inventory, a lot of your money is locked up until the inventory is sold. On the contrary, if your payment terms with your suppliers are less favorable, you will end up paying before your receivables convert to cash. As a result, high sales and profits do not always imply a strong cash position.
Learn more about profit:
brainly.com/question/13050157
#SPJ4
The amount of his monthly net cash flow is the best example of qualitative information
The choice usefulness, decision model approach to accounting theory plays a significant supportive role in the utilization of qualitative traits or qualities required for information. The attributes that make the data supplied in financial statements valuable to users are referred to as qualitative qualities.
Fundamental qualitative traits that are desired in accounting information are produced by the demand for accounting information from investors, lenders, creditors, etc. Accounting information has six distinct qualitative traits.
To lean more about qualitative refer here:
brainly.com/question/28483241
#SPJ4
Japan was isolated during the period of Tokugawa Shogunate ( from the mid 1500s to the mid 1800s ). The reasons why the Shoguns wanted to isolate country from the rest of the world are: foreign influences and the spread of Christianity.
The effects of the isolation:
- The influence of the foreigners was under the control.
- Christianity was forbidden.
- The growth of large centers into cities. The cities were easier to defend, but they relied on the rural communities.
- The wealth of country was increasing.
- China and Korea were allowed limited access.
- The Duch were allowed to trade in certain ports.
