Answer:
B. Gross profit decreased from 28.6% to 26.5%
Explanation:
As for the provided information, we have
Particulars Year 2016 Year 2015
Sales $38,537 $47,011
Cost of goods sold $28,309 $33,546
Gross Profit $10,228 $13,465
Gross profit as a percentage of sales shall be:
Year 2016 = 
Year 2015 = 
As the percentage is higher of 2015 by 0.1%
The statement B which states that the gross profit has reduced is correct.
Answer:
D. Economic value created.
Explanation:
The reason is that the economic value created is the difference between the price the customer is willing to pay and the cost that the product actually costs to the firm.
Following is the formula for calculation of economic value created:
Economic Value Created = Value customer willing to pay - Cost of product
Here the television costs $400 to the firm and the customer is willing to pay $600 for the television. So by putting the values we have:
Economic Value Created = $600 - $400 = $200
So the correct option is option D.
Answer:
OPtion (C) is correct.
Explanation:
Given that,
Issuance of common stock = $100,000
Dividends paid to the company's stockholders = $2,000
Depreciation expense = $6,000
Repayment of principal on bonds = $40,000
Proceeds from the sale of the company's used equipment = $39,000
Purchase of land = $230,000
Cash flow from financing activities:
= Issuance of common stock - Dividends paid to the common stockholders - Repayment of principal on the company's own bonds
= $100,000 - $2,000 - $40,000
= $58,000
Therefore, the net cash inflow from financing activities is $58,000.
