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RoseWind [281]
1 year ago
12

Lopez Sales Company had the following balances in its accounts on January 1, 2018: Cash$68,000 Merchandise Inventory 48,000 Land

108,000 Common Stock 88,000 Retained Earnings 136,000 Lopez experienced the following events during 2018: Sold merchandise inventory that cost $38,400 for $81,600. Sold land that cost $43,200 for $81,000. Required Determine the amount of gross margin recognized by Lopez. Determine the amount of the gain on the sale of land recognized by Lopez.
Business
1 answer:
maxonik [38]1 year ago
4 0

Answer:

Lopez Sales Company

1. Amount of Gross Margin recognized by Lopez:

Sales = $81,600

Less cost of sales = $38,400

Gross Margin = $43,200

2. Amount of the gain on the sale of land recognized by Lopez:

Land:

Selling price = $81,000

less Cost = $43,200

Gain on sale = $37,800

Explanation:

a) Gross margin is the difference between the selling price and the cost price of a product.  It is the profit determined before business running expenses are deducted to obtain the net income or margin.

It measures the ability of the business to generate enough income to cover expenses that are normally incurred in business, like rent, utilities, and salaries and wages.

b) The Gain on sale of any capital asset is the difference between the selling price and the cost (book value).  This gain is reported separately in the income statement and is the subject of capital gains tax.

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Answer: $22.22

Explanation:

We can use the dividend discount model to solve for this.

The formula is,

P = D1 / r - g

Where,

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We do not have the expected return but we can calculate for it using the old stock price and growth rate. Making it x we have,

28.5 = 0.5 / x - 0.075

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x = 0.5 / 28.5 + 0.075

x = 0.09254385964

x = 9.25 %

Now that we have the expected return we can calculate the new stock price with the new growth rate,

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Although most international business is conducted in English, levels of comprehension can vary. How can you enhance your oral co
Arturiano [62]

The following from the given are the ways that would enhance the oral communication skills internationally,

  • Option A: Follow up in writing.
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  • Option E: Encourage accurate feedback.
  • Option F: Smile when appropriate.

<u>Explanation:</u>

Oral communication can be said as the most easiest and fast way of conveying the message or the information. It is more important to develop the oral communication skills for each and every individual.

The following are some of the steps to upgrade the level of language and communicating ability internationally,

Listen - Keep listening whenever the other person speaks.

Accept the mistakes - This will help in rectifying the errors.

Body language - It is not only the words but the gestures of the individual speaks too. So, try to be more appealing when it comes to body language.

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Lynn Amherst is a sales associate for Excel Realty. Lynn is preparing a classified ad for a listed property. The company's phone
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Answer: d. Call Lynn Amherst, Excel Realty 333-2020 (cell).

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A newly issued bond has a coupon rate of 7 percent and semiannual interest payments. The bonds are currently priced at par. The
aleksandrvk [35]

Answer: 7.12%

Explanation:

Effective Annual Interest rate is the nominal interest rate adjusted for the number of compounding periods a financial product will experience in a period of time.

To calculate the Effective Annual Rate one can use the following formula,

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where r is the rate and

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Plugging in figures would give us,

Effective Rate of Interest = (1+0.07/2)^2 - 1

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If you need any clarification do comment or react.

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Builders Inc., Real Estate Broker, Inc., and Developers, Inc. form a business to purchase, develop, and build a shopping mall in
Nina [5.8K]

Answer:

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