Answer:
D. Simon, who is baking a cake that will be sold in a bakery
Explanation:
Simon is the producer here because he is producing a product to sell on the market.
Answer:
The gross margin for December is: 0.5%.
The Gross margin of an organisation or business measure the extent by which its income exceeds the costs it incurs in producing its goods and or services.
The gross margin is measured in percentages. The higher the percentage of this margin, the higher the effectiveness of the company's management in deriving value from every dollar invested.
Explanation:
To arrive at Gross Margin, one is required to subtract the total cost of goods sold from total revenue for the period and dividing that number by revenue. That is:
Gross Margin (GM) = 
Step I - Calculate Revenue
This is given as the total amount of goods sold which is:
800 x $500 = $400,000
Step II - Calculate Cost of Goods Sold
Cost of goods sold per unit is given as
$250 per unit.
Total Cost of Goods sold therefore is
800 x $250 = $200,000
Step III - Calculate Gross Margin
= 
= 
= 
or 0.5%
Cheers!
<span>Return on equity = 11.28 percent = 11.28/100 = 0.1128
debt-equity ratio =1.03
total asset turnover = 0.87
return on assets = ?
we can find return on assets by using the formula
= return on equity / (1 + debt equity ratio)
= 0.1128 / (1 + 1.03)
= 0.1128 / 2.03
= 0.0556 = 0.0556 x 100 = 5.56%
So, the return on assets is 5.56%</span>
Answer and Explanation:
The computation is shown below:
a. Current PE ratio is
For Pacific energy company
= Price ÷ Earnings
= ($967,000 ÷ 0.13) ÷ ($967,000)
= 7.69 times
For U.S Bluechips
= Price ÷ Earnings
= ($967,000 ÷ 0.13) ÷ ($967,000)
= 7.69 times
b. The new PE ratio is
= Price ÷ Earnings
= (($967,000 + $117,000) ÷ 0.13) ÷ ($967,000)
= 8.62 times
c. The new PE ratio is
= Price ÷ Earnings
= (($967,000 + $217,000) ÷ 0.13) ÷ ($967,000)
= 9.42 times
Answer:
A. Dr Cash $327,500
Cr Common Stock $210,000
Cr Capital Paid In $117,500
B. Dr Cash $90,000
Cr Common Stock $90,000
C. Dr Inventory $59,000
Dr Machinery $185,000
Cr Note Payable $95,000
Cr Common Stock $80,000
Cr Capital Paid In $69,000
Explanation:
Preparation of the issuer's journal entry
A. Dr Cash $327,500
Cr Common Stock $210,000
(52,500 shares* $4 par value )
Cr Capital Paid In $117,500
($327,500-$210,000)
B. Dr Cash $90,000
Cr Common Stock $90,000
C. Dr Inventory $59,000
Dr Machinery $185,000
Cr Note Payable $95,000
Cr Common Stock (4000 * $20) $80,000
Cr Capital Paid In $69,000
($59,000+$185,000-$95,000-$80,000)
