Net and Gross Method of Recording Purchases Purchase Discounts It is a contra-expense account which is an offer from the supplier to the purchaser‚ to reduce the selling price if the payment is made within a certain period of time. It is subtracted from the purchases on the income statement. Sellers frequently call them sales discounts. Methods of Recording In accounting‚ gross method and net method are used to record these kinds of transactions. Net Recording Method Under the net method‚ purchase
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increased form 2003 to 2004 to 2006 due to the greater increase in fixed costs especially from expanding the business as well as insufficient average sales and unit sales to compensate these changes. The margin of safety has decreased over the years due to the increase in expenses and the lack of gross profit to compensate. Calculations: | | 2003 | 2004 |2006 | |Break-even
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leverage- a measurement of the degree to which a firm or project incurs a combination of fixed and variable costs. 1. A business that makes few sales‚ with each sale providing a very high gross margin‚ is said to be highly leveraged. A business that makes many sales‚ with each sale contributing a very slight margin‚ is said to be less leveraged. As the volume of sales in a business increases‚ each new sale contributes less to fixed costs and more to profitability. 2. A business that has a higher
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Gross Domestic Happiness: What Is the Relationship between Money and Well-being?: Knowledge@Wharton (http://knowledge.wharton.upenn.edu/article.cfm?articleid=2675) Gross Domestic Happiness: What Is the Relationship between Money and Well-being? Published : January 19‚ 2011 in Knowledge@Wharton Most of us have seen the bumper sticker: "Anyone who says money can ’t buy happiness just doesn ’t know where to shop." It ’s an amusing sentiment‚ but it provokes an important question: What exactly
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cost difference of € 39‚500. Thus‚ Heidelberg price would result in ISD negative gross margin. Even though if we look in terms of contribution margin‚ ISD will still get positive numbers if they took the display monitor from Heidelberg‚ but looking at the objective of having the X73 as the next best thing in a competitive market‚ longer term it would not be viable for ISD to continue having a negative gross margin. Analysis 2: Now if we try to analyze further on Heidelberg and ECD facts:
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investment venture. The company are well positioned in the market for long-term success but the ratios do let down the attractiveness of investment by their much lower percentage of current assets to current liabilities‚ high gearing and low net profit margins. *Brief Historical Background* Mitchells & Butlers is one of the UK’s largest operators of managed establishments with a strong portfolio of branded and unbranded pubs and restaurants with a mass market appeal. Their popular brands include
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CASE OVERVIEW The case is about Natureview Farms‚ Inc.‚ a small yogurt manufacturer that sold refrigerated cup yogurt developed from all natural ingredients. It has established a strong brand name known for its high quality and taste. The company produces 8-oz. cups‚ 32-oz. cups and multipack yogurt products in a variety of flavors. Currently it sold only through its established natural foods channel. Now‚ the management team of the company wants to find a strategy to grow its revenues to $20
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Weaknesses – large price tag for renting‚ long hours for operating students‚ great recipe needed‚ pricing is crucial to students‚ large amounts of inventory needed‚ new flavors need to be introduced‚ freshness required Opportunities – reach large profit margin‚ recession proof‚ able to target unique group of students‚ cheaper than many other drinks such as Jugo Juice Threats – Jugo Juice‚ large price tag may cause company to fail‚ large equity needed from investors‚ size of rental place is very important
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SWOT analysis of Samsung This is a Samsung Electronics SWOT analysis for 2013. For more information on how to do SWOT analysis please refer to our article. Company background Name | Samsung Electronics Co.‚ Ltd. | Industries served | Consumer electronics‚ Telecoms Equipment‚ Semiconductors‚ Home Appliances | Geographic areas served | Worldwide | Headquarters | South Korea | Current CEO | Kwon Oh Hyun | Revenue | ₩ 201.103 trillion (2012) | Profit | ₩ 23.845 trillion (2012) | Employees
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BYP6-2 ACC/349 Managerial Analysis: BYP6-2 (a) Compute and interpret the contribution margin ratio under each approach. Current approach: 800‚000 / 2‚000‚000 = 0.4 Automated approach: 1‚600‚000 / 2‚000‚000 = 0.8 (b) Compute the break-even point in sales dollars under each approach. Discuss the implications of your findings. Breakeven Point – Fixed Expenses / Contribution Margin Ratio Current Approach: 200‚000 / .4 = $500‚000 Automated Approach: 600‚000 / .8 = $750
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