Sales $ 471,000 $ 416,000 Cost of goods sold 330,000 268,000 Gross profit $ 141,000 $ 148,000 Operating expenses 130,000 116,000 Net income $ 11,000 $ 32,000 a. Prepare common size income statements for Price Company, a sole proprietorship, for the two years shown as above by converting the dollar amounts into percentages. For each year, sales will appear as 100 percent and other items will be expressed as a percentage of sales. (Income taxes are not involved as the business is not incorporated.) b. State whether the changes from year 1 to year 2 are favorable or unfavorable.

Sales $ 471,000 $ 416,000 Cost of goods sold 330,000 268,000 Gross profit $ 141,000 $ 148,000 Operating expenses 130,000 116,000 Net income $ 11,000 $ 32,000 a. Prepare common size income statements for Price Company, a sole proprietorship, for the two years shown as above by converting the dollar amounts into percentages. For each year, sales will appear as 100 percent and other items will be expressed as a percentage of sales. (Income taxes are not involved as the business is not incorporated.) b. State whether the changes from year 1 to year 2 are favorable or unfavorable.

By 2009, social media services, such as Facebook and Twitter, had become a popular marketing tool for small businesses. In fact, almost 25% of firms with fewer than 100 employees were using social media for marketing purposes. This was more than double the percentage of the prior year. Many of these firms cite the ease of use and low cost of these social media as the main reason for using them for reaching out to and communicating with potential and existing customers.

How can the ability to communicate with customers via social media enhance channel management? Please explain.

Jack's business premises were destroyed in a fire and all his records were lost apart from a recent analysis that he had made of the latest period's results for his company. He managed to retrieve the following:

Sales: $375000

GP margin: 28%

Total expenses ratio: 17%

Tax Rate 30%

Debt of equity 0,75:1

Current Assets as percentage of cost of 22%

Sales

Current ratio 1.8:1

Return on Equity 11%

Question:

From the information given reconstruct a Statement of Profit or Loss and a Statement of Financial Position.  

Nikki works for the Shine Company, a retailer of upscale jewelry. How much taxable income does Nikki recognize under the following scenarios?
a. Nikki buys a diamond ring from Shine Company for $16,900(normal sales price, $21,220; Shine Company's gross profit percentage is 40 percent).
b. Nikki receives a 26 percent discount on jewelry restoration services offered by Shine Company. This year, Nikki had Shine Company repair a set of antique earrings (normal repair cost $925; discounted price $684.50).

A firm is considering purchasing a computer system. The following data has been collected.
- Cost of the system: $172,000
- Project life: 6 years
- Salvage value at the end of year 6: $16,000
- Depreciation method: five-year MACRS
- Tax rate: 39%
- Annual revenue from project: $142,000
- Annual expenses (not including depreciation): $92,000
The firm will borrow the entire $172,000 at 5.8% interest to be repaid in 2 annual payments.
The firm's MARR is 12%. Determine the IRR for the computer system. Enter your answer as a percentage between 0 and 100."

"A firm is considering purchasing a computer system. The following data has been collected.
- Cost of the system: $155,000
- Project life: 6 years
- Salvage value at the end of year 6: $22,000
- Depreciation method: five-year MACRS
- Tax rate: 40%
- Annual revenue from project: $130,000
- Annual expenses (not including depreciation): $93,000
The firm will borrow the entire $155,000 at 9% interest to be repaid in 2 annual payments.
The firm's MARR is 19%. Determine the IRR for the computer system. Enter your answer as a percentage between 0 and 100."

"A firm is considering purchasing a computer system. The following data has been collected. - Cost of the system: $165,000 - Project life: 6 years - Salvage value at the end of year 6: $19,000 - Depreciation method: five-year MACRS - Tax rate: 32% - Annual revenue from project: $120,000 - Annual expenses (not including depreciation): $78,000 The firm will borrow the entire $165,000 at 5.5% interest to be repaid in 2 annual payments. The firm's MARR is 19%. Determine the IRR for the computer system. Enter your answer as a percentage between 0 and 100."

"A firm is considering purchasing a computer system. The following data has been collected. - Cost of the system: $179,000 - Project life: 6 years - Salvage value at the end of year 6: $11,000 - Depreciation method: five-year MACRS - Tax rate: 41% - Annual revenue from project: $136,000 - Annual expenses (not including depreciation): $85,000 The firm will borrow the entire $179,000 at 7.5% interest to be repaid in 2 annual payments. The firm's MARR is 13%. Determine the IRR for the computer system. Enter your answer as a percentage between 0 and 100."

"A firm is considering purchasing a computer system. The following data has been collected.
- Cost of the system: $125,000
- Project life: 6 years
- Salvage value at the end of year 6: $18,000
- Depreciation method: five-year MACRS
- Tax rate: 33%
- Annual revenue from project: $109,000
- Annual expenses (not including depreciation): $88,000
The firm will borrow the entire $125,000 at 5.3% interest to be repaid in 2 annual payments.
The firm's MARR is 15%. Determine the IRR for the computer system. Enter your answer as a percentage between 0 and 100."