What is the Profitability Ratio of Sarah for the year

Assignment Help Accounting Basics
Reference no: EM133117192

Question - At December 31, 20CY, Sarah Inc.'s accounting records show the following accounts and balances:

Merchandise inventory, January 1

450,000

Purchases

1,500,000

Purchase Discounts

36,000

Freight in

24,000

Salaries and Wages

750,000

Freight out

46,600

Sales Discounts

55,500

Sales

3,650,000

Advertising Expenses

38,000

Depreciation Expense

123,000

Sales returns and allowances

34,500

Rent Expense

120,000

The company took a physical inventory count at December 31, 20CY and noted that P324,000 of inventory remain unsold on that date.

Required - What is the Profitability Ratio of Sarah for the year?

a. 24.39%

b. 54.66%

c. 45.33%

d. 23.79%

Reference no: EM133117192

Questions Cloud

Features of cash flow in an organisation : Describe ANY FOUR (4) features of cash flow in an organisation.
Allocation of the principal to tranches : Suppose that ABSs are created from portfolios of subprime mortgages with the following allocation of the principal to tranches: senior 75%, mezzanine 20%, and e
HEALT1113 Communication For Health Professionals Assignment : HEALT1113 Communication For Health Professionals Assignment Help and Solution, Federation University - Assessment Writing Service
Prepare an income statement : Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Astro Corporation's Year 1 fiscal year
What is the Profitability Ratio of Sarah for the year : The company took a physical inventory count at December 31, 20CY and noted that P324,000 of inventory remain. What is the Profitability Ratio of Sarah
Determine the income tax due : Kagura is a resident citizen, earning purely business income for the taxable year: Gross sales P2,800,000. Determine the income tax due
After-tax interest payment on the bonds : Firm A has $50 million in bonds outstanding and makes an annual interest payment of 4.5 percent. The firm has a marginal tax rate of 34 percent.
Compute the amount of cash and cash equivalents : Compute the amount of cash and cash equivalents to be reported on Meteor City Co.'s balance sheet at December 31, 2022
Percentage of the company total assets : The financial statements of Procter & Gamble Company provide the context for this question which focuses on long-term debt and stockholders' equity.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Which option would you recommend that Morgan exercise

Compute Present value if: $59,920 immediate cash. Which option would you recommend that Morgan exercise

  Prepare journal entry to record salaries expense

Prepare journal entry to record salaries expense and employee taxes. Your company, Metro has five employees, each of whom earn $3,000 per month

  Compute the price and quantity variances for the period

Pyre Mills, Inc. is a large producer of men's and women's clothing. The company uses a standard costing system. The standard costs and actual costs per unit.

  Create a journal entry for March

Create a journal entry for: March 9, 2020 Received payment from Preston Ridge B & B for the month of February, 2020

  Calculate the amount of income that smith should recognize

Calculate the amount of income that smith should recognize for 2006, using the percentage of completion method

  Compute depreciation and the book value of the drill press

Compute depreciation for 2021 and 2022 and the book value of the drill press at December 31, 2021 and December 31, 2022

  Prepare best buys retained earnings statement for the year

the following financial data were adapted from the annual report of best buy inc. for the period ending february 28

  What rising sun company should record the new inventory

Rising Sun Company paid Php 700,000, If the exchange has the necessary commercial substance, Rising Sun Company should record the new inventory received at?

  Investment transactions and events

An NFPO had the following transactions and events. Prepare journal entries to record these transactions and events, based on the assumption that the NFPO.

  What is the amount of net pay for the employee

The employee has voluntary deductions for health insurance of $186. What is the amount of net pay for the employee for the month of January

  What is the stock value for xyz company

The current return on benchmark investments is 11%. Using the Capital Asset Pricing Model what is the stock value for XYZ Company

  Tom zuluaga company placed the asset in service on january

tom zuluaga company placed an asset in service on january 2 2012. its cost was 1350000 with an estimated service life

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!

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