User Account

All Pages

What does the cost of goods sold and gross profit mean

Assignment Help Accounting Basics
Reference no: EM131581555

Question - Word has gotten around that you know accounting and can explain it well. Jim, another of your friends has a unique business. During the summer he buys hats that cost $5.00 each and sells them at the beach for $12.00 each. Other than the cost of the hat, his only other expense last summer was $120 for parking. He sold 78 hats last summer. His accountant prepared a financial statement for him and he has several questions about the income statement. He asks:

1. What does the cost of goods sold and gross profit mean?

2. How much gross profit do I make on each hat?

3. Why show both gross profit and net income?

If I have hats returned or a give a discount, how will that be shown on the income statement?

Reference no: EM131581555

Questions Cloud

Find the five internal member forces : Find the five internal member forces and the three external support forces, assuming static equilibrium conditions at all joints
What is the expected net present value of the project : Johnson's attorneys in France assessed the probability of a favorable ruling at 70%. What is the expected net present value of the project
Prepare a scenario including dialogue for the conversation : Discussion- Communicating Negative Information: Prepare a scenario, including dialogue, for the conversation between you and Nancy in this situation.
What is the internal rate of return for this investment : Assume that an initial investment is $100,000 and that the estimated annual cash flows for the next 5 years are $25,000
What does the cost of goods sold and gross profit mean : Word has gotten around that you know accounting and can explain it well. What does the cost of goods sold and gross profit mean
Attributes and primary keys needed : Please identify the attributes and primary keys needed for each of the entities.
What is the difference between finance and accounting : Define what is the difference between "Finance" and "Accounting". Also, what financial benchmark / technique will you be employing
What is npv of this project if the discount rate is infinite : What is the NPV of this project if the discount rate is infinite?
Find out a common property resource : For each of the following examples, discuss whether it is a private good, a public good, a common property resource, or an artificially scarce good.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd