Tarrant Electronic report their gross profit for the year, along with comparative figures, arrived at as shown.

Question:

Required:

(a) Identify the gross profit ratios.

(b) Explain possible reasons for the change in relationship between sales (which increased) and the gross profit (which decreased).

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Financial Accounting An Introduction

ISBN: 9780273737650

2nd Edition

Authors: Mr Barry Elliott, Mr Augustine Benedict

See More Books

Question Posted: Aug 28, 2023 09:25 AM

See More Questions

The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
The Rosewood Resort and the Blaze Mountain Resort are located in Ontario's fastest-growing four-season re- sort area. Both resorts are owned by privately owned companies. Rosewood, which is owned by...
A USD 25,000 project with a 4% discount rate over 5 years is expected to generate the following CF: Initial investment -25.000 Year 1 3,000 Year 2 5,000 Year 3 8,000 Year 4 11,000 Year 5 15,000...
Four of Wands, LLC generated $255,000 in sales during January 2022. Of this amount, 25% was for cash. The remaining 75% of sales were made on account. The February 2022 sales on account were...
The December 31, 2011, Balance Sheet and the 2012 Statement of Cash Flows for Snow, Inc., follow: Requirement 1. Prepare the December 31, 2012, balance sheet for Snow,Inc. Snow, Inc. Balance Sheet...
Skyline Software Ltd has appointed you as its finance manager. The company wants to implement a project for which Rs 30 lakh is required to be raised from the market as a means of financing the...
During 2023, it was common on some social media sites and internet discussion boards to hear people say, No one is willing to work anymore. Go to the Hubbard and OBrien Economics Blog and read the...
Firm R has sales of 100,000 units at $2.00 per unit, variable operating costs of $1.70 per unit, and fixed operating costs of $6,000. Interest is $10,000 per year. Firm W has sales of 100,000 units...
Which of the following conclusions could be drawn if the gross profit ratio falls from 25 to 18%? (a) There has been a deliberate change in trading policy (b) There has been a mistake in counting or...
Stated below are particulars with regard to six different companies a to f. Each of these companies has borrowed 2,500 at 8% interest per annum. Fill the shaded grids with appropriate figures. (a) OO...
Suppose that during the playing of the coins-in-a-line game that Alices opponent, Bob, makes a choice that is suboptimal for him. Does this require that Alice recompute her table of remaining M i,j...
Find the three complex numbers zo, 2, and 2 that satisfy the equation z = 8i. First, write the solutions in polar form such that their arguments are all in [0, 2) and are written in increasing order....
Suppose that the one-year interest rate is 13 percent in the United Kingdom. The expected annual rate of inflation for the coming year is 10.5 percent for the United Kingdom and 5 percent for...
5. The workpiece given below will be manufactured on a Fanuc-controlled CNC lathe. a. Write the appropriate CAM program for this manufacturing. (40P) b. Show the passes on the figure, indicating the...
How do you envision cost accounting evolving or adapting to meet the changing needs of businesses in today's dynamic economic landscape?
When DeVry University exaggerated its graduates' job prospects and earnings, this was an example of what?
Using the data from Problem 18-2A and the inventory information for Leone Company below, complete the requirements below. Assume income tax expense is $233,725 for the year. Inventories Raw...
Danielle has an insurance policy with a premium of $75 per month. In September she is in an accident and receives a bill worth $2990 for the repair of her own property. Her deductible is $250 and her...
Allowing employees to use their own smartphones for work will save the company money. Do you agree? Why or why not?
What are the benefits of intelligence-driven prosecution for crime fighters and the general public?
What problems does this approach to crime fighting pose?
discuss the current evidence-based practices for the patient assessments and nursing interventions needed for Vincent? What are the nursing teaching priorities for Vincent when he experiences an...
What are human resource planning and its effect? How do organizations deal with human resource management?
I stopped in the store got money out of the ATM machine. I dropped the money on the floor and was already outside of the store. Bobby the attendant told me I just dropped the money on the floor that...

Tarrant Electronic report their gross profit for the year, along with comparative figures, arrived at as shown.

Question:

Sales Inventory Purchases Inventory Gross profit Year ended 30 June 2012 £'000 £'000 £'000 884 2011 128 726 (164) (690) 194 116 652 (128) £'000 876 (640) 236

Step by Step Answer:

a Gross profit ratio 2012 194000884000 100 219 2011 236000876000 100 269 b Possible reasons for fall ...View the full answer

Financial Accounting An Introduction

Students also viewed these Business questions