2. How would you expect the ratios to differ between a discount supermarket and luxury retailer? A. Discount supermarket would have a lower gross margin B. Discount supermarket would have a higher SGA margin C. Discount supermarket would have lower inventory turnover D. Discount supermarket would have lower ROE

2. How would you expect the ratios to differ between a discount supermarket and luxury retailer? A. Discount supermarket would have a lower gross margin B. Discount supermarket would have a higher SGA margin C. Discount supermarket would have lower inventory turnover D. Discount supermarket would have lower ROE

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Inventory Costing Method. In the period of inflation, businesses will choose to use LIFO, whereas, during the deflation period, they will pick FIFO instead if they want to have the lowest income tax. Why is that?
Among the simple average pricing and weighted average pricing method. Which of the store ledger preparing method is more preferrable in this contemporary business world and why?
6. Discuss the inventory policies of Nordstrom to that of other department or retail stores. Does this policy impact customer service?
Darlington Company experienced the following business events during its first month of operations. The company uses the perpetual Inventory system. 1) The company purchased $14,400 of merchandise on account under terms 2/10, n/30. 2) The company returned $3,100 of merchandise to the supplier before payment was made. 3) The llability was paid within the discount period. 4) All of the merchandise purchased was sold for $22,600 cash. What is the net cash flow from operating activities as a result of the four transactions? Multiple Choice $11,526 $11,074 $5,100 $8,200
Suppose you a stock analyst are performing a ratio analysis and comparing a discount merchdiser with a high end merchandiser. Suppose further that both companies have identical ROE. IF You apply the dupont equation to both firms, would you expect the three components to be the same for both companies? If not, explain what balance balance sheet and income statements might lead to the differences in the Dupont equation components.
DONT GIVE ANSWER IN IMAGE FORMAT
A firm that uses LIFO accounting for inventory in times of rising investory costs will always report lower profit margins than if it used FIFO. Is this correct?
During periods when costs are rising and inventory quantities are stable, cost of goods sold will be: Multiple Choice Lower under average cost than LIFO. Higher under FIFO than average cost. Lower under LIFO than FIFO. Higher under FIFO than LIFO.
How are intercompany sales eliminated? Select one: a. Decrease Parents inventory and Subsidiary inventory b. Decrease sales and inventory c. Decrease cost of sales and inventory d. Decrease sales and cost of sales
2. Shepherd Cycles does not expect prices to change dramatically and wants to use a method that averages price changes. B. Which inventory method would best meet Shepherd's goal? Enter answer here. C. What if Shepherd wanted to expense out the newer purchases of goods instead? Which inventory would best meet that need? Enter answer here.
Describe the approaches to estimate stand-alone selling prices.
Help with this problem