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Concept Introduction:
Gross Margin:
The gross margin can be defined as the difference between net sale and cost of goods sold. It is calculated by subtracting cost of sales from net sales.
Gross Margin Ratio:
The gross margin ratio can be defined as the ratio calculated by dividing gross margin with sales. It is calculated as under −
To compute:
Gross margin ratio for Apple and Google and Samsung
Concept Introduction:
Gross Margin:
The gross margin can be defined as the difference between net sale and cost of goods sold. It is calculated by subtracting cost of sales from net sales.
Gross Margin Ratio:
The gross margin ratio can be defined as the ratio calculated by dividing gross margin with sales. It is calculated as under −
If Samsung's gross margin ratio is better than (a) Apple's ratio? (b) Google's
Concept Introduction:
Income Statement:
The income statement can be explained as the statement giving details about the revenues, incomes, gains and expenses, losses etc. The income statement is prepared to determine net income or loss of the business by listing all the revenues, gains and expenses and losses of the business. It can be single step income statement as well multi step income statement.
Whether (a) Apple, (b) Google and (c) Samsung use single-step or multi-step income statement
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Chapter 5 Solutions
FUND.ACCT.PRIN.(LOOSELEAF)
- Crane Company sponsors a defined benefit pension plan. The corporation's actuary provides the following information about t January 1, 2025 December 31, 2025 Vested benefit obligation $1,560 $2,010 Accumulated benefit obligation 2,010 2,820 Projected benefit obligation 2,260 3,630 Plan assets (fair value) 1,540 2,560 Settlement rate and expect rate of return 10% Pension asset/liability 720 ? Service cost for the year 2025 $400 Contributions (funding in 2025) 730 Benefits paid in 2025 200 (a)Compute the actual return on the plan assets in…arrow_forwardThe Willow Mills Company mills barley into flour. The equivalent units are measured in terms of tons of flour produced. At the beginning of the year, the mill contained 25 tons of barley that was 40 percent milled. During the year, another 600 tons of barley were completely milled. At the end of the year, the company has 50 tons of barley 70 percent milled. How many equivalent tons of barley has Willow Mills Company milled during the year?arrow_forwardWhat are the equipment units of production for materials?arrow_forward
- Acorn Construction (calendar-year-end C corporation) has had rapid expansion during the last half of the current year due to the housing market's recovery. The company has record income and would like to maximize its cost recovery deduction for the current year. (Use MACRS Table 1, Table 2, Table 3, Table 4, and Table 5.) Note: Round your answer to the nearest whole dollar amount. Acorn provided you with the following information: Asset Placed in Service Basis New equipment and tools August 20 $ 3,800,000 Used light-duty trucks October 17 2,000,000 Used machinery November 6 1,525,000 Total $ 7,325,000 The used assets had been contributed to the business by its owner in a tax-deferred transaction two years ago. a. What is Acorn's maximum cost recovery deduction in the current year?arrow_forwardThe equivalent units of production are?arrow_forwardThe difference revenue of producing product B isarrow_forward
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