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Svet_ta [14]
3 years ago
7

At the beginning of 2018, Midway Hardware has an inventory of $310,000. Because sales growth was strong during 2018, the owner w

ants to increase inventory on hand to $360,000 at December 31, 2018. If net sales for 2018 are expected to be $2,100,000, and the gross profit rate is expected to be 25%, compute the cost of the merchandise the owner should expect to purchase during 2018.
Business
1 answer:
nalin [4]3 years ago
4 0

Answer:

$1,625,000

Explanation:

For computing the purchase amount first we have to determine the cost of goods sold which is shown below;

As we know that

Cost of goods sold = Sales revenue - gross profit

                               = $2,100,000 - $2,100,000 × 25%

                               = $2,100,000 - $525,000

                               = $1,575,000

Now the purchase amount is

Cost of goods sold = Beginning inventory + purchase - ending inventory

$1,575,000 = $310,000 + purchase - $360,000

So, the purchase amount is $1,625,000

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Standardizing purchases is the approach most likely to be used for leverage purchases. Thus, the correct answer option is (d) ''standardizing purchases''.

Leverage purchases refer to the purchase of those assets for which people use a significant amount of borrowed money with the hopes of growing their money in the future. For example, if an individual takes out a loan to invest in their business, the investment the individual pour into theri business helps them to earn more money than if he would not pursue their venture at all.  For leverage purchases, standardized purchases are the most useful approach. The standardized purchases approach defines a set of consistent rules for leverage purchases.

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3 0
1 year ago
Internal Rate of Return Manzer Enterprises is considering two independent investments: A new automated materials handling system
slega [8]

Answer:

1. IRR for the first investment: 13%

2. IRR for the second investment: 10%

3. IRR for the first investment give changes in cash flow: 4%

Explanation:

IRR is the discount rate that will bring project's net present value to 0. Apply this, we will calculate IRR in each given scenario:

1. -900,000 + (300,000/IRR)/ [ 1 - (1+IRR)^-4] = 0 <=> IRR = 13%

2. -755,000 + 400,000/(1+IRR) + 500,000/(1+IRR)^2 = 0 <=> IRR = 10%

3. -900,000 + (250,000/IRR)/ [ 1 - (1+IRR)^-4] = 0 <=> IRR = 4%

(all the answers have been rounded to whole percentage values as required in the question).

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3 years ago
Which is an advantage of presenting information in a video format? It requires the use of some form of technology to watch it. I
ludmilkaskok [199]

Answer: D -

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Explanation:

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4 years ago
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Answer:

The correct answer is the option D: the equilibrium price of MP3 players will increase; the equilibrium quantity will decrease.

Explanation:

First of all, the supply and demand curves are the graphical representation of the price and the quantity demanded and supplied respectively in each case. Moreover, in the graphic when both curves are in equilibrim that means that there is a single point in where the price and the quantity are established together for the market. Furthermore, when there is a shift of any curve that point will be changed so when there is a shift in the demand curve to the right the price will increase and the quantity will increase but if there is a shift in the supply change to the left and that shift is greater then the price will increase but the quantity will decrease.

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Answer:

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