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...
Critically assess the emergence of CSR reporting.
Fill in the blanks: (a) A Bank Reconciliation Statement is prepared to reconcile the difference in balance between ____and ____ (b) Bank Overdraft means________ balance in Cash Book and _____balance...
Cook Corporation manufactures plastic garbage cans. In a typical year, the firm produces between 40,000 and 50,000 cans. At this level of production, fixed costs are $10,000 and variable costs are $2...
! Required information [ The following information applies to the questions displayed below. ] Martinez Company's relevant range of production is 7 , 5 0 0 units to 1 2 , 5 0 0 units. When it...
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...
15-5. Cul es la distincin principal entre un sistema corporativo y otro administrado de marketing vertical?
Units processed during September for material and conversion. Ask an instructor lock lock lock A 3 A copy Determine the cost per equivalent unit for material and conversion cost combined. copy...
12% of all college students volunteer their time. Is the percentage of college students who are volunteers different for students receiving financial aid? Of the 338 randomly selected students who...
Mervon Company has two operating departments: mixing and bottling. Mixing has 3 3 0 employees and Bottling has 2 2 0 employees. Indirect factory costs include administrative costs of $ 1 8 2 , 0 0 0...
XP Ltd. is a manufacturing company with high stock requirements. Management are currently considering their stockholding policy. The following information is available for one stock item, material...
Process Costing: weighted average method Required: make a cost of production report in good form. Cost of Production Report-Weighted Average First Dept- Gem Company applies 100% of materials at the...
Is the fluid that goes up the inside tube in a hand sprayer pushed up the tube or sucked up the tube? Explain.
The percentage of completion and completed contract methods are described in the FASB ASC. Search the codification to find the paragraphs covering these topics, cite them, and copy the results.
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?
firm purchased a new piece of equipment with an estimated useful life of eight years. The cost of the equipment was $65,000. The salvage value was estimated to be $10,000 at the end of year 8. Using...
On an average day, a company writes checks totaling $1,500. These checks take 7 days to clear. The company receives checks totaling $1,800. These checks take 4 days to clear. The cost of debt is 9%....
Olds Company declares Chapter 7 bankruptcy. The following are the book values of the asset and liability accounts at that time. A bankruptcy expert estimates that administrative expense will total $...

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