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Molodets [167]
3 years ago
12

Selected information taken from the accounting records of Vigor Company follows:

Business
1 answer:
MariettaO [177]3 years ago
7 0

Answer and Explanation:

The computation is shown below:

But the following calculations must be done

Account receivable turnover = Net sales ÷ average account receivable

5 = Net sales ÷ ($900,000 + $1,000,000) ÷ 3

5 = Net sales ÷ $950,000

Now the net sales is

= $950,000 × 5

= $4,750,000

And,

Inventory turnover ratio = Cost of goods sold ÷ average of account receivable

4 = Cost of goods sold ÷ ($1,100,000 + $1,200,000) ÷ 3

4 = Cost of goods sold ÷ $1,150,000

Cost of goods sold

= $1,150,000 × 4

= $4,600,000

Now the gross profit is

a. The gross profit is

= Sales - cost of goods sold

= $4,750,000 - $4,600,000

= $150,000

2. The days sales outstanding in both the cases are as follows:

DSO in inventory

= 360 ÷ 4

= 90 days

And, DSO in account receivable

= 360 ÷ 5

= 72 days

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During Year 1, Hardy Merchandising Company purchased $20,000 of inventory on account. Hardy sold inventory on account that cost
mel-nik [20]

Answer:

[b] = $ 2500

[c] = $ 7500

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Explanation:

Here the solution is given as follows,

3 0
3 years ago
The nominal exchange rate is .80 euros per U.S. dollar and a basket of goods in France costs 1,000 euros while the same basket c
lukranit [14]

Answer:

Australia has purchasing-power parity with the U.S.

Explanation:

A basket of goods costs $800 in the US. The same basket costs 1,000 euros in France and 960 Australian dollars in Australia.  

The nominal exchange rate for euros is .80 euros per U.S. dollar and for Australian dollars, it is 1.2 Australian dollars per U.S. dollar.  

The purchasing power parity theory compares the currency of two countries through a basket of goods. The currency of the two countries is in equilibrium or is at par if a basket of goods cost the same in both the countries.  

This method compares the economic productivity and standard of living in two countries.  

Converting the value of basket in France into US dollars,

= \frac{1,000}{0.80}

= $1,250  

Converting the value of basket in Australia into US dollars,

= \frac{960}{1.2}

= $800

The cost of the basket of goods is same in Australia. This indicates that Australia has purchasing-power parity with the U.S.

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3 years ago
Suppose there is a large increase in the money supply in an economy that previously had low inflation. As a consequence, aggrega
hoa [83]

Answer:

It illustrates that the classical model of the price level best applies to economies with persistently high inflation.

Explanation:

When a very low inflation rate has been constant in an economy, and the money supply increases suddenly, in the short run that change will not immediately increase the inflation rate, but instead it will increase real output.

Classical economists argue that an increase in the money supply will immediately affect the inflation rate, but that theory applies mostly to economies that have a certain level of inflation. For example, for the past 12 years, European nations have been experiencing very low inflation rates, sometimes even negative rates. But during that same period, the European Central Bank has carried on a huge expansionary policy. It favored economic growth, although not as much as expected, but it didn't skyrocket inflation rate as the classical economy model predicted.

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3 years ago
Conservatives and liberals have very different views on healthcare reform. A news station places a story featuring the conservat
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A. Bias by placement, because bias by labeling would be something to the effect of calling the liberals point of view  uneducated, or giving there view some negative label, bias by omission would mean completely ignoring the other side, and not covering it at all, whereas all the other ones don't really fit, bias by placement is something to the effect of airing one side in the morning, while everyone is watching, and airing the other one after everyone is asleep, which is what is done here, which we know by the sentence "<span>liberal point of view at the end."</span>
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3 years ago
In an effort to increase customer loyalty, management at Phat International has worked to create a personaldialogue with their c
IRISSAK [1]

Answer: Relationship Marketing

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Relationship marketing is a form of marketing where a business tries to create a lasting bond with their customers, done by constant communication with their customers to get feedback of their products/ services.

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