Chapter 2, Problem 3.6EC

A company has provided the following data

Net sales for the year were $3,750,000 and cost of goods sold was $2,625,000 for the company's flagship product line. The company is planning to release a new product extension which will need to be priced at $125 per unit to be competitive in the market. a. Calculate gross profit and the gross profit ratio for the year.

The cash process receiving by the seller are ?

What would be the bad debt expense for the year?

What is the cost of the equipment?

What role does assurance boundary definition.

?

Critical estimates in accounting have significant impact on the financial statements. How does an auditor should ensure that the accounting estimates are reasonable? What are some approaches recommended by PCAOB and a estimate. For example, product warranty or fair value measurement etc.

Financial accounting question