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A company buys and sells physical goods to individuals and other companies. March 4 orders the company 50 products from a subcontractor. The invoice arrives on March 10 and is on SEK 50,000 without VAT (25%) and the payment terms are 30 days net. The company places a 100% mark-up on the net purchase price when the sales price is determined. The last April, 40 of the products are sold. In connection with the above-mentioned event, the company's a) How big is the company's cost in connection with the above mentioned event?  b) How large is the company's revenue in connection with the above-mentioned event?

A company buys and sells physical goods to individuals and other companies. March 4 orders the company 50 products from a subcontractor. The invoice arrives on March 10 and is on SEK 50,000 without VAT (25%) and the payment terms are 30 days net. The company places a 100% mark-up on the net purchase price when the sales price is determined. The last April, 40 of the products are sold. In connection with the above-mentioned event, the company's a) How big is the company's cost in connection with the above mentioned event?  b) How large is the company's revenue in connection with the above-mentioned event?

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter17: Advanced Issues In Revenue Recognition
Section: Chapter Questions
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A company buys and sells physical goods to individuals and other companies. March 4 orders the company 50 products from a subcontractor. The invoice arrives on March 10 and is on
SEK 50,000 without VAT (25%) and the payment terms are 30 days net.
The company places a 100% mark-up on the net purchase price when the sales price is determined. The last April, 40 of the products are sold. In connection with the above-mentioned event, the company's

a) How big is the company's cost in connection with the above mentioned event? 

b) How large is the company's revenue in connection with the above-mentioned event? 

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