Homework Answers
| Solution-10 | |||
| Computation of Gross Margin Ratio | |||
| Year-3 | Year-2 | Year-1 | |
| Sales | $51,000.00 | $46,500.00 | $42,000.00 |
| Less: Cost of Goods Sold | $46,000.00 | $42,000.00 | $38,000.00 |
| Gross Margin | $5,000.00 | $4,500.00 | $4,000.00 |
| GM Ratio (b/a) | 9.80% | 9.68% | 9.52% |
| Correct Answer will be getting better |
| Solution-11 | |
| Amount Required at the end of 10 year | $2,500 |
| PVIF @10% for 3 year | 0.75131 |
| Amoutn
Required today (2500*0.75131) |
$1,878.28 |
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