1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
igor_vitrenko [27]
3 years ago
6

The Intramural Sports Club reports sales revenue of $578,000. Inventory at both the beginning and end of the year totals $110,00

0. The inventory turnover ratio for the year is 3.9.
What amount of gross profit does the company report in its income statement?
Business
1 answer:
Genrish500 [490]3 years ago
3 0

Answer:

$363,500

Explanation:

Gross profit = Revenue - Cost of Goods Sold.

In the case

Revenue = $578,000.

The Cost of Goods Sold: COGS

Inventory turn over = COGS/ Average turnover

Average turnover = Opening stock + closing stock/2

In this case Opening stock + Closing stock = $110,000

Average turnover = $110,000 /2 =$55,000

Therefore:

3.9 = COGS/$55,000

COGS = $55,000 x 3.9

COGS =$214,500

Gross profit =  $578,000 - $214,500

Gross profit = $363,500

You might be interested in
Luke is the owner of Fun Times, a U.S. event-planning company. He plans to open an event-planning company, Events & Adventur
yan [13]

Answer:A

Explanation:

A joint ventures is a business entity created by two or more parties, generally characterized by shared ownership.

5 0
3 years ago
Suppose Caroline is choosing how to allocate her portfolio between two asset classes: risk-free government bonds and a risky gro
stich3 [128]

Answer:

Ans 1)

As Average Annual return increases from Combination A to E we can observe that Standard deviation also increases from A to E

Therefore it is clear that there is positive relationship between the Risk of Caroline's portfolio and the average annual return.

Ans 2)

IF Caroline needs to reduce the risk associated with portfolio combination D from 15 to 5 then he can do 2 things such that he should sell some portion of portfolio invested into stocks and ultimately accept lower returns because as we see in Part 1) answer risk and returns are positively correlated.

Option 2) and Option 3) are correct

Ans 3)

95% confidence interval gives us range of -2*SD, 2*SD

therefore range of return for given scenario with portfolio return equals to 3.5% and SD=5%

(Mean- z value*SD , Mean value*SD)=

(3.5%-2*5% , 3.5%+2*5%)=(-6.5%,13.5%)

Gain of 13.5% and Loss of -6.5%

5 0
3 years ago
the present value of a future sum decreases as either the discount rate or the number of periods per year increases, other thing
Katena32 [7]

The statement is true. The present value of a future sum decreases as either the discount rate or the number of periods per year increases, other things held constant.

Future cash flows are reduced by the discount rate, so the higher the cut price fee the lower the existing fee of the destiny coins flows. A lower discount rate leads to a higher present value. As this implies, whilst the discount price is better, cash in the future will be worth less than it's far nowadays.

Preserving other factors steady, as the interest price will increase, the present cost of an quantity to be received at the end of a fixed duration decreases. This means at a higher hobby price the present value of a future cash float falls. Decrease the prevailing price is. inversely related. growing the discount price decreases the present price and vise versa. Future value of that investment.

The prevailing value of a destiny lump sum decreases as the discount fee used decreases, All else held constant. the present cost and discount rate are inversely associated. If the destiny cost and the range of periods are held steady the prevailing price will lower as the cut price rate increases.

Learn more about The present value here:-

brainly.com/question/12736329

#SPJ4

4 0
2 years ago
Suppose you are a manager of a firm that operates in a duopoly. Recently, the state attorney general fined you and your competit
larisa86 [58]

Answer: The price level  chosen to maximize profits will be $ 6.71

Explanation:

Whenever there is price fixing between two competitors, and one of the competitor decides to choose a price level. Such competitor must ensure that the price level chosen to maximize profit does not exceed his or her competitor's marginal cost but can be  above his or her marginal cost .

Since the price fixing is $10 from previous cartel price so the best price level to maximize the profit would be less than my  rival's  price of   $ 6.72 and more than my  marginal cost of $ 6.70  which is $ 6.71

8 0
3 years ago
Kingbird Corporation (a calendar year C corporation) reports the following income and expenses this year: Income from operations
Artyom0805 [142]

Answer:

$7,500

Explanation:

Taxable income:

= Income from operations + Dividends received - Expenses from operations

= $200,000 + $15,000 - 140,000

= $75,000

Deductions is allowed only to the maximum extent of 10% of the taxable income of the corporation.

Therefore,

Kingbird's charitable contribution deduction:

= 10% of Taxable income

= 0.1 × $75,000

= $7,500

8 0
3 years ago
Other questions:
  • If you were an engineer of an actual roller coaster, what information would you need to know in order to ensure that your coaste
    6·2 answers
  • ___ integrity tests indirectly estimate employee honesty by measuring psychological traits.
    10·1 answer
  • If a company owns more than 20% of the stock of another company and the stock is being held as a long-term investment, which met
    10·2 answers
  • Employee morale, timeliness of delivery, and the reactions of customers are examples of nonfinancial factors that should be cons
    14·1 answer
  • Alfredo has two offers for his grocery shop. The first offer is a cash payment of $60,000, and the second is a down payment of $
    7·1 answer
  • Whiat actions can is likely to restore the trust of the american public in the free-market system?
    7·1 answer
  • Vegas Company is considering eliminating an unprofitable segment. The segment’s fixed costs are avoidable and are less than its
    8·2 answers
  • On 1/1/2020, Studebaker Corp. had an Accounts Receivable balance of $500,000 and an Allowance for Doubtful Accounts balance of $
    15·1 answer
  • Mike has a car accident and Maria saves his life. To show his appreciation, Mike gives Maria a life estate in one of the homes h
    14·1 answer
  • As posited by carroll’s pyramid, the first and foundational responsibility of organizations in the global economy is to.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!