Asked by
Degnet Sorsa
on Oct 30, 2024
Verified
Bill's business has sales of $100,000,inventory of $20,000,cost of goods sold of $31,000,and general and administrative expenses of $45,000.Bill's gross profit is $80,000.
Gross Profit
The financial gain calculated by subtracting the cost of goods sold from total revenue.
Inventory
The total amount of goods and materials held in stock by a business, shop, or warehouse.
Administrative Expenses
Ongoing expenses associated with the general operation of a business, such as office supplies, salaries of non-sales personnel, and utilities.
- Comprehend the fundamental elements and computations required for a balance sheet.
- Calculate and interpret key financial ratios and cycles relevant to business performance evaluation.
Verified Answer
YB
Learning Objectives
- Comprehend the fundamental elements and computations required for a balance sheet.
- Calculate and interpret key financial ratios and cycles relevant to business performance evaluation.
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