<span>First we must determine the cost of goods sold during November. For this we use beginning inventory ($368,000) + purchases ($217,500) - ending inventory ($226,750). This gives us a total cost of goods sold for November of $358,750.
Then, we take the net sales ($1,000,000) minus the cost of goods sold ($358,750) which equals our gross profit of $641,250.
Finally we divide gross profit ($641,250) by net sales ($1,000,000) to determine the gross profit rate to be 64.125%</span>
Answer:
Yes
Explanation:
The 0.01 percent of the deviation plus the 0.01 percent of the sales average is not enough to get to the $6,300 daily, which means that the factor of the increase sales is the advertising campaign.
Answer:
d. Both the longer term and the higher risk would tend to make the interest rate higher on the bond issued by Knight.
Explanation:
Both the longer term and the higher risk would tend to make the interest rate higher on the bond issued by Knight because this bond is risky and uncertain.
This means the company would not want to run at a loss
Answer:
Goodwill is:
The excess of the fair value of a business over the fair value of all net identifiable assets.
Explanation:
This definition of Goodwill implies that it is usually acquired by the purchaser of another business, when it pays a price higher than the fair market value of the other company's net assets. It is not a physical asset like property, plant, and equipment, but intangible.
Goodwill arises from a company's good reputation, loyal customers or clientele base, brand identity, talented workforce, and proprietary technology.
Goodwill does not have a definite life and under US GAAP and IFRS standards. Therefore, it is not amortized like other intangible assets but is evaluated for impairment every year.
