RIO is a retailer of smart televisions. Typically, the company purchases a television for $1,200 and sells it for $1,500. What is the gross profit margin on this television? a. 80% b. $300 c. 25% d. 20%

RIO is a retailer of smart televisions. Typically, the company purchases a television for $1,200 and sells it for $1,500. What is the gross profit margin on this television? a. 80% b. $300 c. 25% d. 20%

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter2: T Accounts, Debits And Credits, Trial Balance, And Financial Statements

Section: Chapter Questions

Problem 6QY: What would be the net income for Floress Catering? a. 45,500 b. 16,800 c. 19,800 d. 10,800

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What would be the net income for Floress Catering? a. 45,500 b. 16,800 c. 19,800 d. 10,800
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Beaucheau Farms sells three products (E, F, and G) with a sale mix ratio of 3:1:2. Unit sales price are shown. What is the sales price per composite unit? A. $28.00 B. $20.00 C. $59.00 D. $41.00
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Consider the following transaction: On February 15, Darling Dolls sells 110 dolls with a sales price of $15 per doll to Rosemary Cummings The cost to Darling Dolls is $5 per doll. Prepare a journal entry under each of the following conditions. Assume Gentry charges a 3.5% fee for each sales transaction using its card. A. Payment is made using a credit, in-house account. B. Payment is made using a Gentry credit card.
Johnson Corporation had beginning inventory of 20,000 at cost and 35,000 at retail. During the year, it made net purchases of 180,000 at cost and 322,000 at retail. Johnson nude sales of 300,000. Assuming a price index of 100 at the beginning of the year and 110 at the end of the year, compute Johnsons ending inventory at cost using the dollar-value LIFO retail method.
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Unearned Sales Revenue Brand Landscaping offers a promotion where a customers lawn will be mowed 20 times if the customer pays $700 in advance. Required: Prepare the journal entry to record (1) the customers' prepayment of S700 and (2) Brands mowing of the lawn one time.
Jims Camera shop sells two high-end cameras, the Sky Eagle and Horizon. The demand for these two cameras are as follows: Ds = demand for the Sky Eagle, Ps is the selling price of the Sky Eagle, DH is the demand for the Horizon, and PH is the selling price of the Horizon. DS=2220.60Ps+0.35PHDH270+0.10Ps0.64PH The store wishes to determine the selling price that maximizes revenue for these two products. Develop the revenue function for these two models, and find the prices that maximize revenue.
Analyze and compare Amazon.com and Wal-Mart Amazon.com, Inc. (AMZN) is one of the largest Internet retailers in the world. Wal-Mart Stores, Inc. (WMT) is the largest retailer in the United States. Amazon and Wal-Mart compete in similar markets; however, Wal-Mart sells through both traditional retail stores and the Internet, while Amazon sells only through the Internet. Interest expense and income before income tax expense from the financial statements of both companies for two recent years follow (in millions): a. Compute the times interest earned ratio for both companies for the two years. Round to one decimal place. b. Interpret Amazons interest coverage from Year 1 to Year 2. c. Does a times interest earned ratio less than 1.0 mean that creditors will not get paid interest? d. Interpret Wal-Marts interest coverage from Year 1 to Year 2. e. Which company appears to have the greater protection for creditors?
Perfume Depot sells two different tiers of perfume products to customers. They charge $30 for tier 1 perfume and $100 for tier 2 perfume. The sales tax rate is 4.5%. During the month of October, Perfume Depot sells 75 tier 1 perfumes, and 60 tier 2 perfumes. A. What is the total tax charged to the customer per tier 1 perfume? What is the overall charge per tier 1 category perfume? B. What is the total tax charged to the customer per tier 2 perfume? What is the overall charge per tier 2 category perfume? C. How much sales tax liability does Perfume Depot have for the month of October? D. What accounts are used to recognize this tax situation for the month of October? E. When Perfume Depot remits payment to the sales tax governing body, what happens to the sales tax liability?
FORECASTING THE FUTURE PERFORMANCE OF ABERCROMBIE FITCH Use online resources to work on this chapters questions. Please note that website information changes over time, and these changes may limit your ability to answer some of these questions. Clothing retailer Abercrombie Fitch enjoyed phenomenal success in the late 1990s. Between 1996 and 2000, its sales grew almost fourfoldfrom 335 million to more than 1.2 billionand its stock price soared by more than 500%. However, in 2002, its growth rate had begun to slow down, and Abercrombie had a hard time meeting its quarterly earnings targets. As a result, the stock price in late 2002 was about half of what it was 3 years earlier. Abercrombies struggles resulted from increased competition, a sluggish economy, and the challenges of staying ahead of the fashion curve. From late 2002 until November 2007, the companys stock rebounded strongly; however, its stock price declined during the 2008 economic downturn. Its stock price rebounded until late October 2011, when it began a downward trend again. Questions remain about the firms long-term growth prospects. However the company has been cutting costs and trying to improve productivity with its focus on the supply chain. In addition, it has been actively repurchasing shares, indicating that management believes its shares are undervalued. The company continues to steadily expand stores abroad while closing under-performing domestic stores. Given the questions about Abercrombies future growth rate, analysts have focused on the companys earnings reports. Financial websites such as Yahoo! Finance, Morningstar, and MSN Money (www.msn.com/en-us/money/markets) provide information on the companys recent earnings history along with a summary of analysts earnings forecasts. DISCUSSION QUESTIONS Based on analysts forecasts, what is the expected long-term (5-year) growth rate in earnings?