They are considered a buyer in the ordinary course of business.
Answer:
profit margin is 16.0 %
gross profit rate is 39.6 %
Explanation:
given data
net sales = $248,700
cost of goods sold = $146,900
operating expenses = $58,000
net income = $39,900
beginning total assets = $473,900
ending total assets of $635,400
to find out
profit margin and gross profit rate
solution
we will apply here profit margin formula that is
profit margin = ..............1
put here value
profit margin =
profit margin = 16.04 = 16.0 %
and
gross profit rate formula is
gross profit rate = ..............2
put here value
gross profit rate =
gross profit rate is 39.72 = 39.6 %
Answer:
cash 20,000,000 debit
unearned revenue 20,000,000 credit
Explanation:
Record the advance collection of $20 million for iTunes gift card.
When a gift card is sold, Apple Inc assume the obligation of latter provide iTunes in the near future or do cash reimbursement therefore; this isn't revenue. It is a liability. Apple will generate revenue when the gift ard are redeem not at sale.
Answer:
c. 2.30 years
Explanation:
In the payback, we analyze in how many years the invested amount is recovered. The computation is shown below:
In year 0 = $1,150 (Initial investment)
In year 1 = $500
In year 2 = $500
In year 3 = $500
If we sum the first 2 year cash inflows than it would be $1,000
Now we deduct the $1,000 from the $1,150 , so the amount would be $150 as if we added the fourth year cash inflow so the total amount exceed to the initial investment. So, we deduct it
And, the next year cash inflow is $500
So, the payback period equal to
= 2 years + ($150 ÷ $500)
= 2.30 years
In 2.30 yeas, the invested amount is recovered.
Answer:
$12.22 per share
Explanation:
The computation of the stock price one year from now is shown below;
Current EPS = Net Income ÷ Number of shares
= $95,000,000/5,500,000
= $17.2727
Now
P/E Ratio = Market Price per share ÷ Earnings per share
= $14.75 ÷ 17.2727
= 0.8539 times
Now
Revised EPS = $95,000,000 × 1.25 ÷ 8,300,000
= $14.3072
So, the Price is
= 14.3072 × 0.8539
= $12.22 per share