Answer:
the gross profit reported is $1,518
Explanation:
The computation of the amount of gross profit that reported is shown below:
But before that the gross profit percentage is
= (Sales - cost of goods sold) ÷ (sales)
= ($138,000 - $110,400) ÷ ($138,000)
= 20%
Now the gross profit is
= $25,300 × 20% × 30%
= $1,518
Hence, the gross profit reported is $1,518
Its true it is supposed to be in 13 weeks
In monopolistic competition, what effect do price variations generally have on the market as a whole?
It's no effect.
Answer:
The journal entry that is to be recorded on May 1 is shown below:
Explanation:
May 1
The first entry to be posted:
Accounts Receivable A/c...................Dr $5,800
Sales A/c............................................Cr $5,800
As the company made a sale, so the sale is credited and it made against the accounts receivable. Therefore, accounts receivable account is credited.
The second entry to be posted is as:
Costs of goods sold A/c....................Dr $4,000
Merchandise inventory A/c...................Cr $4,000
The cost of the goods sold amounts to $4,000. So, the account of COGS is debited and it is against the inventory. Therefore, the merchandise inventory is credited.
Answer:
A. Decrease
Explanation:
In investment appraisal with the method of Net Present Value, the bone of contention and the central matter is the TIME VALUE OF MONEY.
In the above scenario, the initial working capital was 100% released in proportions of 40%, 40% and 20%, throughout the 3 years of the project. However, if the reverse had been the case, i.e. parting with more cash now and the requirement of working capital now becomes: Year 0 = -10,000, Year 1 = - 10,000, Year 2 = -10,000, Year 3 = +30,000; the NPV would definitely shrink because the value of 10,000 each in Years 0-2 would not be the same when it is recovered from the project in year 3. The value will be smaller and hence the NPV of the project would have decreased as a result of the time value of money.
