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marissa [1.9K]
2 years ago
11

Selected financial statement data for Schmitzer Inc. is shown below: 2021 2020 Balance sheet: Inventories 75,000 63,000 Ratios:

Gross profit ratio for 2021 40 % Inventory turnover ratio for 2021 6 What was the amount of net sales for 2021
Business
1 answer:
kondaur [170]2 years ago
7 0

The amount of net sales for 2021 is $1,035,000.

Average inventory = (Beginning inventory + Ending inventory) / 2

Average inventory = ($63,000 + $75,000) /2

Average inventory = $69,000

  • The formula for Inventory turnover ratio is <em>{Cost of goods sold/Average inventory]</em>

6 = Cost of goods sold / $69,000

Cost of goods sold = $414,000

Given Gross profit ratio is 40%: Gross profit = 40% on sales

Let the sales be $K

Gross profit = Sales - Cost of goods sold

0.4K = K - $414,000

0.4K = $414,000

K = $414,000 / 0.4

K = $1,035,000

Therefore, the amount of net sales for 2021 is $1,035,000.

See similar solution here

<em>brainly.com/question/14161287</em>

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The use of accelerated depreciation:____.a. discourages investment in plant and equipment. b. increases expenses and decreases c
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On January 1, 2010, Sunshine company issues bonds maturing in 10 years. The par value of the bonds is $500,000, the annual coupo
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Answer and Explanation:

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= $20,000

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= $20,000 × 7.3601 + $500,000 × 0.5584

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Being cash is recorded)

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(Being interest expenses is recorded)

6. Over the years the interest rate would rise as the bonds were issued at a discount.

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3 years ago
A business rents bicycles and in-line skates. Bicycle rentals cost $25 per day, and in-line skate rentals cost $20 per day. The
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Answer:

a.

25 b+20 s=455...equation 1

b+s=20...equation 2, where b and s are the number of bicycle and in-line skate rentals per day.

b. The business had 11 bicycle rentals and 9 in-line skate rentals.

Explanation:

a.

<em>Step 1: Determine an equation for total revenue today</em>

Since the business rents bicycles and in-line skates, the total revenue will be as a result of amount received in revenue from renting the bicycles and in-line skates. This can be expressed as shown;

T=(B×b)+(S×s)

where;

T=total revenue

B=bicycle rental cost per day

b=number of bicycles

S=in-line skate rental cost per day

s=number of in-line skates

In our case;

T=$455

B=$25 per day

b=unknown

S=$20 per day

s=unknown

Replacing;

(25×b)+(20×s)=455

25 b+20 s=455...equation 1

<em>Step 2: Determine an equation for total rentals today</em>

The equation for the total number of rentals is;

R=b+s

where;

R=total number of rentals today

b=number of bicycles

s=number of in-line skates

In our case;

R=20

b=unknown

s=unknown

Replacing;

b+s=20...equation 2

b.

<em>Step 3: Combine equation 1 and 2 ans solve simultaneously</em>

1(25 b+20 s=455), multiplying equation 1 by 1=25 b+20 s=455

     20(b+s=20), multiply equation 2 by 20=20 b+20 s=400

25 b+20 s=455

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20 b+20 s=400

5 b+0 s=55

(5 b)/5=55/5=11

b=11, replace the value for b in equation 2 and solve;

(20×11)+20 s=400

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20 s=180

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The business had 11 bicycle rentals and 9 in-line skate rentals.

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