Answer:
The answer is 3. Subtracting cost of goods sold from net sales
Explanation:
Gross margin or Gross profit is the profit a business earn after deducting cost associated with making the goods from net sales(Net sales - Cost of goods sold or Cost of sales)
To calculate cost of goods sold - opening inventory/stock plus purchases minus closing inventory/stock.
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Answer:
Explanation:
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Average and poor business writers are more likely than excellent writers to focus on the drafting stage first.
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Answer:
The total reported inventory value is $1,130.
Explanation:
Note: The data given the question are sorted and presented properly as follows:
<u> Selling Price </u> <u> Cost </u>
Large animals:
Cattle $320 $160
Horse 400 400
Small animals:
Cat $360 $320
Dog 120 90
Exotic pets:
Ferret $140 $112
Iguana 70 48
Based on the lower of cost and net realizable value rule, we select the lower and determine the reported inventory value as follows:
<u>Details Value ($) </u>
Large animals:
Cattle 160
Horse 400
Small animals:
Cat 320
Dog 90
Exotic pets:
Ferret 112
Iguana <u> 48 </u>
Total value <u> 1,130 </u>
Therefore, the total reported inventory value is $1,130.