MANAGERIAL ACCT W/CONNECT >IC<
15th Edition
ISBN: 9781259405303
Author: Garrison
Publisher: MCG
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Chapter AB, Problem 6P
To determine
Profitability: The profitability also known as the return on sales represents the net profit earned as a percentage of the total turnover.
Margin: Margin means the net profit earned by the business and revenue represents the total sales turnover of the business in a given period.
The use of margin as the numerator and the use of revenue as the denominator in the formula of profitability.
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Bistro Brands had the following information:
Total market value of the company's stock: $780
million
Total market value of the company's debt: $220
million
What is the weighted average of the company's debt?
A. 22.00%
B. 28.20%
C. 35.80%
D. 78.00%
E. 90.00%
A warehouse fire on September 25 destroyed all
inventory. The company retrieved the following
information:
Beginning Inventory (Jan. 1): $220,000
• Net Purchases (Jan. 1 - Sept. 25): $1,750,000
• Net Sales (Jan. 1 - Sept. 25): $3,000,000
• Estimated Gross Profit Rate: 38%
Chapter AB Solutions
MANAGERIAL ACCT W/CONNECT >IC<
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