Profit Essay Examples

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profit, in a merchandising business. All expenses incurred during the business operation are then deducted from the total gain to obtain the net profit. Purchases made after the sale of merchandise and recorded as inventory. Other records include returns for returned purchases and sales of merchandise. In a merchandise business, discounts are offered to customers to encourage to pay earlier. Shipping of merchandise requires either the buyer or the seller to pay for the shipment expenses depending on the destinations and the agreement between the two parties. A seller in a merchandising business must record two adjusting entries for allowances and expected returns. Importance of the Topic Covered...

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Profitability The profitability of the company can be assessed using the profit margin which indicates the capability of earning profits. The profit margin in 2006 was 0.09, 0.05 in 2007 and 0.0004 in 2008; this trend shows a major decline in 2008 because of the decrease in net income. Long-term debt ability The long-term debt ability of Strong Tie Ltd can be assessed using the debt ratio which indicates the company’s capability of paying its long-term debts. The debt ratio in 2006 was 0.28, 0.28 again in 2007 and 0.69 in 2008. This show that company will be in position to pay its long-term debtsRecommendations The company should work on increasing its working capital so that it can increase...

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profit indirectly by increasing sales of the 40 inch TV’s, but it cannot be accounted as revenue realized by the firm from cash or cash benefits. If the increased profits from the increase in the sale of TV’s will be higher than the lost revenue of $119.9 on each free DVD, then Mr. Justin Time cannot claim to have lost revenue. According to the (FASB, 2016, ASC para. 605-10-25-1), when it comes to gains, the realization is superior to...

profits the clinic must order based on the needs and in this case the amount of patients. 4000 has a higher probability of...

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profit or loss expressed in percentage, which is required to convince the investor to make an investment. However, it is important to note that this is always determined by the market (Dixit & Pindyck, 1995). In this case, the investor is presented with two investment of the same risk which he then chooses one that will award the highest return. One of the approaches used in determining the cost of capital is the subjective approach. This occurs when an investor uses personal opinions and educated guesses in making decision on certain investment. Some of the main advantages of this approach are; companies would not always have the luxury of providing a discount for every available project in an...