Explanation:
The computation is shown below:
a. The gross margin is
Gross margin = (Sales revenues - Cost of sales) ÷ (Sales revenues) × 100
= ($10.7 million - $5.9 million) ÷ ($10.7 million) × 100
= 45%
b. The local operating margin is
= (Operating income ÷ Sales) × 100
where,
Operating income is
= (Sales - cost of sales - selling, general & administrative expenses - research & development - Depreciation & Amortization) ÷ (Sales revenue) × 100
= ($10.7 million - $5.9 million - $0.55 million - $1.2 million - $1.4 million) ÷ ($10.7 million) × 100
= ($1.65 million) ÷ ($10.7 million) × 100
= 15.42%
c. Net profit margin
= (Net profit ÷ Sales) × 100
where,
= (Sales - cost of sales - selling, general & administrative expenses - research & development - Depreciation & Amortization) × (1 - tax rate) ÷ (Sales revenue) × 100
= ($10.7 million - $5.9 million - $0.55 million - $1.2 million - $1.4 million) × (1 - 0.35) ÷ ($10.7 million) × 100
= ($1.0725 million) ÷ ($10.7 million) × 100
= 10.02%
Answer:
retained earnings 40,000 debit
common stock 8,000 credit
additional paid-in Common Stock 32,000 credit
Explanation:
shares issued:
800,000 shares x 5% = 4,000 new shares
face value of the shares
4,000 x $2 = 8,000
market value 4,000 x $10 = 40,000
additional paid-in 40,000 - 8,000 = 32,000
we decrease retained earnings and increase the euqity account to balance.
Answer:
the cash paid as on June 24 is $9,424
Explanation:
The computation of the cash paid as on June 24 is as follows:
= Merchandise cost + Freight charge - Purchase returns - Discount Eligible at 3%
= $10,000 + $500 - $800 - [($10,000 - $800) × 0.03]
= $10,000 + $500 - $800 - $276
= $9,424
Hence, the cash paid as on June 24 is $9,424
Answer:
9.68%
Explanation:
The cost of equity :
Using this formula
rE=rU+D/E *(rU-rD)
Let plug in the above formula:
rU=0.092
D=0.13
E=(100%-13%)
=0.87
rD=0.06
rE=0.092+ 0.13/0.87*(0.092-0.06)
rE=0.092+0.1494*0.032
rE=0.092+0.004781
= 0.0968 ×100
=9.68%
