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(1)
The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount.
To compute:
The ratio of cost to sales ratio for company A.
(2)
The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount.
To compute:
The ratio of cost to sales ratio for company G.
(3)
The ratio of cost to net sales shows the efficiency of a business in production. This ratio should always be low. Cost to sale ratio also shows the total cost of goods sold against total sale amount. Higher ratio of cost to sale shows that the total cost is against the sales.
To discuss:
Company with higher cost ratio.
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Chapter 4 Solutions
Managerial Accounting + Connect Access Card
- Need true option general Accountingarrow_forwardPam Pet Foods Co. reported net income of $52,000 for the year ended December 31, 2005. January 1 balances in accounts receivable and accounts payable were $30,000 and $28,000, respectively. Year-end balances in these accounts were $27,000 and $31,000, respectively. Assuming that all relevant information has been presented, Pam's cash flows from operating activities would be__.need helparrow_forwardI want to correct answer general accounting questionarrow_forward
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- Pam Pet Foods Co. reported net income of $52,000 for the year ended December 31, 2005. January 1 balances in accounts receivable and accounts payable were $30,000 and $28,000, respectively. Year-end balances in these accounts were $27,000 and $31,000, respectively. Assuming that all relevant information has been presented, Pam's cash flows from operating activities would be__.arrow_forwardcan you please solve thisarrow_forwardAccounting 54arrow_forward
- Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegeIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningManagerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
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