Fryers Electronics reported the information shown below. Required 1. Is Fryers Electronics a merchandising entity, a service
Question:
Required
1. Is Fryers Electronics a merchandising entity, a service business, or both? How can you tell? List the items in Fryers Electronics' financial statements that influence your answer.
2. Compute Fryers Electronics' gross margin for fiscal years 2014 and 2013. Did the gross margin increase or decrease in 2014? Is this a good sign or a bad sign about the company?
3. Write a brief memo to the owner advising her of Fryers Electronics' trend of sales, gross margin, and net income. Indicate whether the outlook for Fryers Electronics is favourable or unfavourable, based on this trend. Use the following memo format:
DATE:
TO: The Owner
FROM: (Student Name)
SUBJECT: Trend of sales, gross margin, and net income for Fryers Electronics
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Accounting Volume 1
ISBN: 978-0132690096
9th Canadian edition
Authors: Charles T. Horngren, Walter T. Harrison, Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood