All categories

1 year ago

Selected financial data for Quick Sell, Inc., a retail store, appear as follows.

Business

1 answer:

blagie [28]1 year ago

8 0

Answer:

a-1

Year 2 34%

Year 1 33%

a-2

Year 2 4.5

Year 1 4.0

a-3

Year 2 5.0

Year 1 6.1

b. Year 2

Explanation:

a-1. Computation for the gross profit percentage for both years using this formula

Gross profit percentage = Gross profit / Sales

Let plug in the formula

Year 2 =( $ 750,000-495,000)/$ 750,000 = 34%

Year 1 = ($ 610,000-$408,000)/$ 610,000 = 33%

a-2. Computation for the inventory turnover for both years using this formula

Inventory turnover = Cost of goods sold / Average inventory during the year

Let plug in the formula

Year 2 = 495,000 /110,000 = 4.5

Year 1 = 408,000/102,000= 4.0

a-3. Computation for the accounts receivable turnover for both years using this formula

Accounts receivable turnover = Sales (on account) / Average receivables during the year

Let plug in the formula

Year 2 = $ 750,000 /150,000 = 5.0

Year 1 = $ 610,000 /100,000 = 6.1

b. Based on the above calculation Year 2 show a positive trend.

You might be interested in

Penelope, a sales representative for ADT Security Services, is meeting with Oliver and Gina Kim to discuss installing a security

romanna [79]

Answer:

Personal Selling

Explanation:

The marketing tool illustrated in the question is personal selling. Personal selling is a marketing strategy that involves a sales rep meeting with a potential client for business purpose.

It makes use of 7 approaches as listed: Prospecting ,pre-approach, approach,presentation , meeting and overcoming objection , closing the sale and follow up,

In the question , we can see that Penelope fulfilled some of the approaches in the course of her meeting with the Kims.

7 0

2 years ago

Morris is a software engineer for a manufacturer. He wrote a program for the accounting department. During the testing phase, he

Lyrx [107]

Answer:

The principle of the Software Engineering Code of Ethics that Morris has violated is:

the Product principle.

Explanation:

The Product principle requires that Morris' program (product and related modifications) should meet the highest professional standards. Staying within budget and rationalizing an error as minor are not requirements of the Software Engineering Code of Ethics that Morris subscribed to.

Other requirements of the code include acting in the best interest of the public, client, and employer; maintaining high product standards; integrity and independence in professional judgment; using an ethical approach; maintaining professional integrity and independence; being fair and supportive to colleagues; and ensuring participation in lifelong learning.

5 0

1 year ago

The following data represent the probability distribution of the holding period returns for an investment in Lazy Rapids Kayaks

Brut [27]

Answer:

17.5%

Explanation:

The expected return is the weighted average of the expected returns in each scenario by its respective probability.

The distribution of the holding period returns (HPR) under three different scenarios is:

State of the economy Scenario #(s) Probability, p(s) HPR

HPR Boom 1 0.336 28.40%

Normal growth 2 0.414 7.90%

Recession 3 0.25 18.90%

The calculations are:

$E(HPR) = 0.336\times 28.40\%+0.414\times 7.90\%+0.25\times 18.90\%$

$E(HPR)=17.5\%$

6 0

2 years ago

Joy Manufacturing Company needs to know its anticipated cash inflows for the next quarter by month. Cash sales are 25 percent of

Basile [38]

Answer:

Total cash collection= $30,250

Explanation:

Giving the following information:

Cash sales are 25 percent of total sales each month.

Sales on account:

50 percent in the month of the sale

30 percent in the month after the sale

20 percent two months after the sale.

Sales:

January $20,000

February $10,000

March $40,000

We need to calculate the cash collection for March:

Sales on cash March= 40,000*0.25= 10,000

Sales on account March= (40,000*0.75)*0.5= 15,000

Sales on account February= (10,000*0.75)*0.3= 2,250

Sales on account January= (20,000*0.75)*0.2= 3,000

Total cash collection= $30,250

3 0

2 years ago

On October 1, Year 1, Jason Company paid $7,200 to lease office space for one year beginning immediately. What is the amount of

victus00 [196]

Answer:

The amount of rent expense that will be reported on the Year 1 income statement is $1,800 .

The cash outflow for rent that would be reported on the Year 1 statement of cash flows is $5,400.

Explanation:

Though the amount paid was paid on October 1, Year 1 it will only be expensed from October to December for year 1.

The duration of the payment is 12 months, hence

Monthly amortization = $7,200/12 = $600

Rent expense for year 1 = $600 × 3 = $1,800

The ending balance in the prepaid rent account will be

= $7,200 - $1,800

= $5,400

This will be the cash outflow for rent that would be reported on the Year 1 statement of cash flows.

6 0

1 year ago