User Account

All Pages

What does the cost of goods sold and gross profit mean

Assignment Help Financial Accounting
Reference no: EM131932734

Assignment

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: EM131932734

Questions Cloud

What is the most you would pay today for fanshawe stock : If investments with the same risk as Fanshawe's stock have an expected return of 10.75%, what is the most you would pay today for Fanshawe's Stock?
What are the tariff or non-tariff trade barriers : What are some specific examples of tariff or non-tariff trade barriers? Examine the impacts of tariff or non-trade barriers on the global trading system.
Which investment has the lower IRR : The NPV of M is lower than the NPV of N at a required return of 14%, which investment has the lower IRR?
Favor the new building project : If 9 people are chosen at random, what is the probability that exactly 7 of them favor the new building project?
What does the cost of goods sold and gross profit mean : What does the cost of goods sold and gross profit mean? How much gross profit do I make on each hat? Why show both gross profit and net income?
Conduct a hypothesis test : Conduct a hypothesis test, by calculating the z-score, at a = .05, for a two-tailed test.
What is the probability that the sample mean : What is the probability that the sample mean will be between 40 and 50 units?
Country risk assessment : Student groups will adopt the role of a risk management team for a MNC to assess the political, economic, and social risks existing in a developing country
What are the npv and irr for this project : If the tax rate is 30 percent and cost of capital is 12%, what are the NPV and IRR for this project?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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