Use the given financial information of BAB's Industry below.Average Accounts ReceivableP90,000.00Average Accounts PayableP700,000.00Beginning Inventories300,000.00Net Sales2,000,000.00Ending Inventories500,000.00Gross Profit Margin25%How much is the gross profit?P1,500,000P1,000,000P500,000D P2,000,000

Name: Use the given financial information of BAB's Industry below.Average A
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Description: Use the given financial information of BAB's Industry below.Average Accounts ReceivableP90,000.00Average Accounts PayableP700,000.00Beginning Inventories300,000.00Net Sales2,000,000.00Ending Inventories500,000.00Gross Profit Margin25%How much is the

Net Sales = P2,000,000 Gross profit margin = 25% Gross profit = Net Sales x Gross profit margin

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Accounting

Use the given financial information of BAB's Industry below. Average Accounts Receivable P90,000.00 Average Accounts Payable P700,000.00 Beginning Inventories Ending Inventories 300,000.00 Net Sales 2,000,000.00 500,000.00 Gross Profit Margin 25% How much is the gross profit?

Use the given financial information of BAB's Industry below. Average Accounts Receivable P90,000.00 Average Accounts Payable P700,000.00 Beginning Inventories Ending Inventories 300,000.00 Net Sales 2,000,000.00 500,000.00 Gross Profit Margin 25% How much is the gross profit?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 22Q: The following is select account information for August Sundries. Sales: $850,360; Sales Returns and...

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Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of goods sold 660.0 Gross profit 135.0 Selling expenses 73.5 EBITDA 61.5 Depreciation expenses 12.0 Earnings before interest and taxes (EBIT) 49.5 Interest expenses 4.5 Earnings before taxes (EBT) 45.0 Taxes (40%) 18.0 Net income 27.0 a. Calculate the ratios you think would be useful in this analysis. b. Construct a DuPont equation, and compare the companys ratios to the industry average ratios. c. Do the balance-sheet accounts or the income statement figures seem to be primarily responsible for the low profits? d. Which specific accounts seem to be most out of line relative to other firms in the industry? e. If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how might that affect the validity of your ratio analysis? How might you correct for such potential problems?
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