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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

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Last year ABC Media had $425 million of sales, and it had $270 million of fixed assets that were used at 65% of capacity. In mil
FrozenT [24]

Answer:

additional sales without adding the Fixed assets are $228.85 million

so correct option is d)  $228.85

Explanation:

given data

sales = $425,000,000

fixed assets = $270,000,000

capacity = 65%

to find out

how much could ABC Media's sales increase before it is required to increase its fixed assets

solution

we get here Sales at full capacity that is express as

Sales at full capacity = Actual sales ÷ capacity %   ..................1

put here value

Sales at full capacity = \frac{425000000}{0.65}

Sales at full capacity = $653846153.8

so sales without adding fixed assets will be

sales without adding fixed assets = Full capacity sales - Actual sales   ............2

put here value

sales without adding fixed assets = $653846153.8 - $425,000,000

sales without adding fixed assets = $228846153.8

so that additional sales without adding the Fixed assets are $228.85 million

so correct option is d)  $228.85

7 0
3 years ago
What you like to do you like to do school are read
nikdorinn [45]

Answer:

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just saying

Explanation:

7 0
2 years ago
Reynolds Manufacturers Inc. has estimated total factory overhead costs of $96,000 and expected direct labor hours of 12,000 for
Ipatiy [6.2K]

Answer:

the work in process should be debited for $13,520 and factory overhead should be credited for $96,000

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The computation is shown below;

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