The company's cost of good sold is $350,000. The cost of good sold is a cost which directly attributed to the inventory sold by a company. Gross profit is a portion of income which created by the selling of inventory ignoring other expense besides the cost of good sold. From the company's data, we can find the cost of good sold by finding the difference between net sales and gross profit, therefore the formula we have to use is "Cost of good sold = Net sales - gross profit".
Answer:
a) EPS 2.367 dollars
b) price-earning ratio 15
c) book value of a common share 5.33
Explanation:
a) earning per share: income / shares outstanding
2,000,000 / 750,000 = 2.67
b) price / EPS
40 / 2.67 = 15
c) We determinate this using the accounting equation:
Assets = Liab + Equity
Assets 9,000,000
Liabilities<u> 5,000,000</u>
Equity 4,000,000
equity / shares outstanding:
4,000,000 / 750,000 = 5.3333
Explanation:
The Answer Is C. That's It
Answer:
B) $1,187.50
Explanation:
The computation of the total profit or loss on this investment is given below:
Expiration price = 1061'4 = 1061 + 4 ÷ 8 = 1061.50
Quoted price = 1056'6 = 1056 + 6 ÷ 8 = 1056.75
Now the profit is
= (1061.50 - 1056.75) × 5000 × 5
= $1,187.50
Hence, the profit on this investment is $1,187.50
Answer:
Uncertainty.
Explanation:
Uncertainty is defined as a state of decision making in which the nature of things are unknown, the extent and magnitude of circumstances are unpredictable and reasonable probabilities cannot be used to determine outcomes.
Uncertainty is a challenge when there is too much uncertainty and business cannot determine outcomes.
However manageable uncertainty can help a business come up with creative decisions that will benefit the business.
