Answer:
E)Pure play approach
Explanation:
From the question we are informed about, Farmer's Supply, Inc. who is considering opening a clothing store, which would be a new line of business for the firm. Management has decided to use the cost of capital of a similar clothing store as the discount rate that should be used to evaluate this proposed expansion. In this case, the terms used to describe the approach Farmer's Supply is taking to establish an appropriate discount rate for the project is Pure play approach.
Pure play approach In finance, can be regarded as be used in estimating cost of equity capital especially of that of
private companies, and this involve the examination of beta coefficient of single focused companies as well as public companies. In this approach
company set it's focuses on a particular single type product.
We need the is as follows to know and answer the question sorry but can hellp unless the questions finished
Answer:
Date General Ledger Dr. Cr.
1. September 30 Cash $6,300
Sales Tax Payable $300
Sales $6,000
2. September 30 Cost of Goods Sold $3,900
Merchandise Inventory $3,900
3. October 15 Sales Tax Payable $300
Cash $300
Explanation:
Sales Tax is subject to the price of merchandise. Sales tax is collected by the business on the taxable supplies on the behalf of government and paid to the government.
Sales tax amount = 6,000 x 5% = $300
Cost of Merchandise is recorded as cost of goods sold and deducted from the merchandise inventory.
Select (A RANGE) to apply formatting to several cells at the same time.
-I hope this helps!!
