The gross price method highlights sales discounts taken and the net price method highlights sales discounts NOT taken
Indicate whether the statement is true or false
True
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It's advisable for a company to fit its products into existing attitude patterns rather than attempt to change them
Indicate whether the statement is true or false
Choose the correct sentence
A) All the petitions have been filed. B) All of the petitions have been filed.
Marks Corporation has two operating departments, Drilling and Grinding, and an office. The three categories of office expenses are allocated to the two departments using different allocation bases. The following information is available for the current period: Office ExpensesTotal Allocation BasisSalaries$30,000 Number of employeesDepreciation 20,000 Cost of goods soldAdvertising 40,000 Net sales ItemDrilling Grinding TotalNumber of employees 1,000 1,500 2,500 Net sales$325,000 $475,000 $800,000 Cost of goods sold$75,000 $125,000 $200,000 The amount of the total office expenses that should be allocated to Grinding for the current period is:
A. $54,250. B. $600,000. C. $90,000. D. $45,000. E. $35,750.
Blueroot Inc. is considering a change in its financing policy. Currently, it uses maximum trade credit by not taking discounts on its purchases. The standard industry credit terms offered by all its suppliers are 2/10 net 30 days, and the firm pays on time. The new CFO is considering borrowing from its bank, using short-term notes payable, and then taking discounts. The firm wants to determine the effect of this policy change on its net income. Its net purchases are $11,760 per day, using a 365-day year. The interest rate on the notes payable is 10%, and the tax rate is 25%. If the firm implements the plan, what is the expected change in net income?
A. $41,202 B. $43,370 C. $45,657 D. $48,060 E. $50,463