What distinguishes a merchandising business from a service business? Can a business earn a gross profit but incur a net...
What distinguishes a merchandising business from a service business? Can a business earn a gross profit but incur a net loss? Explain.
Give an example of a merchandising business and service business.
Homework Answers
| A merchandise business generates income by selling goods to its customers. However a service business produce income by providing services to their customers | ||
| Differences between merchadise business and service business | ||
| Details | Merchandise Business | Service Business |
| Revenue | Sales revenue | Service revenue |
| example: Selling price of the inventory | Example: Fee received, interest received and rent received etc. | |
| Expenses | Cost of goods sold and operating expences | only operating expences |
| example: Rent, Office supplies, taxes, utilities, insurance etc. | example: Rent, Office supplies, taxes, utilities, insurance etc. | |
Business can lead to net loss even with gross profit if it's operating expenses are more than gross profit.
Example of merchandise business is tire manufacturing company and example of serive business it consultancy services.
Add Answer to:
What distinguishes a merchandising business from a service business? Can a business earn a gross profit but incur a net...
Use the following information (in random order) from a merchandising company and from a service company....
Use the following information (in random order) from a merchandising company and from a service company. Kleiner Merchandising Company Accumulated depreciation $ 700 Beginning inventory 12,000 Ending Inventory 7,200 Expenses 2,150 Net Purchases 15,100 Net Sales 23,500 Krug Service Company Expenses $ 10, 200 Revenues 28,000 Cash 800 Prepaid rent 580 Accounts payable 200 Equipment 2,500 Required: a. Compute the goods available for sale, the cost of goods sold, and the gross profit for the merchandiser. Hint: Not all information...
As a merchandising company Lowes subtracts ______ from sales to disclose gross profit: a. losses on...
As a merchandising company Lowes subtracts ______ from sales to disclose gross profit: a. losses on investments b. selling expenses c. net income d. cost of merchandise sold
Calculate Net sales, Gross profits from sales and gross profit margin and profit and loss and...
Calculate Net sales, Gross profits from sales and gross profit margin and profit and loss and Terms are: Sales Sales Discounts (5 %) $16,000 S $105,000 560 $418,000 Net sales Cost of goods sold Gross profit from sales 4,00 31,00 -320.00 215,00 -8.000-64.000 Gross profit margin ratio Gross profit/ Sales) x 100 Operating expenses ?9.000 . 31.000 -22.00? -261,000 106.000 rofit (loss) Quick Study 5-2
Module Two: Merchandising for a Profit Operating Income (Gross Sales and...
Module Two: Merchandising for a Profit Operating Income (Gross Sales and Net Sales) 1. Return Percentages: Customer returns and allowances for Department #620 came to $5,500. Gross sales in the department were $100,000. What percentage of merchandise sold was returned? Customer returns and allowances $5,500 Gross sales $100,000 Return Percentage 2. Net Sales $: If gross sales...
What does service based business sell? How do we calculate its gross profit?
What does service based business sell? How do we calculate its gross profit?
Give two real-life examples of actual companies for a service business, two examples of a merchandising...
Give two real-life examples of actual companies for a service business, two examples of a merchandising business, and two examples of a manufacturing business. Of the companies you mention, which one would you prefer to be the CEO of? How would you manage that choice differently based on what type of business it is? For example, how would you lead a service business versus a manufacturing business? How would your concerns be different and how would they be the same？
What is the difference between a service business and a merchandising business? As you answer the...
What is the difference between a service business and a merchandising business? As you answer the question, you may want to look at the difference in accounts used as well as the differences between product costs and selling and administrative costs.
Kleiner Merchandising Company Accumulated depreciation $ Beginning inventory Ending Inventory Expenses Net Purchases Net Sales 700...
Kleiner Merchandising Company Accumulated depreciation $ Beginning inventory Ending Inventory Expenses Net Purchases Net Sales 700 8,500 4,500 1.800 9,500 16,500 Krug Service Company Expenses $ 8,100 Revenues 21,000 Cash 600 Prepaid rent Accounts payable 200 Equipment 1,900 640 Required: a. Compute gross profit, the goods available for sale, and the cost of goods sold for the merchandiser Hint Not all information may be necessary b. Use the above information from a service company and from a merchandiser to compute...
Kleiner Merchandising Company Accumulated depreciation $ Beginning inventory Ending Inventory Expenses Net Purchases Net Sales 700...
Kleiner Merchandising Company Accumulated depreciation $ Beginning inventory Ending Inventory Expenses Net Purchases Net Sales 700 8,500 4,500 1,800 9,500 16,500 $ 8. 100 21,000 Krug Service Company Expenses Revenues Cash Prepaid rent Accounts payable Equipment 600 640 200 1.900 Required: a. Compute gross profit, the goods available for sale, and the cost of goods sold for the merchandiser. Hint Not all information may be necessary b. Use the above information from a service company and from a merchandiser to...
LOL. What are merchandising operations a) List and describe the operating cycle of a merchandising business:...
LOL. What are merchandising operations a) List and describe the operating cycle of a merchandising business: b) In your own words, define Cost of Goods Sold? c) In your own words, define Gross Profit and how is it calculated? a) What is the difference between the period and perpetual inventory systems? LO2. How are purchases of merchandise inventory recorded in a perpetual inventory system a) Using the perpetual system, Journalize for: a) the purchase of merchandise inventory of $1,000 on...
Use the following information (in random order) from a merchandising company and from a service company. Kleiner Merchandising Company Accumulated depreciation $ 700 Beginning inventory 12,000 Ending Inventory 7,200 Expenses 2,150 Net Purchases 15,100 Net Sales 23,500 Krug Service Company Expenses $ 10, 200 Revenues 28,000 Cash 800 Prepaid rent 580 Accounts payable 200 Equipment 2,500 Required: a. Compute the goods available for sale, the cost of goods sold, and the gross profit for the merchandiser. Hint: Not all information...
Calculate Net sales, Gross profits from sales and gross profit margin and profit and loss and Terms are: Sales Sales Discounts (5 %) $16,000 S $105,000 560 $418,000 Net sales Cost of goods sold Gross profit from sales 4,00 31,00 -320.00 215,00 -8.000-64.000 Gross profit margin ratio Gross profit/ Sales) x 100 Operating expenses ?9.000 . 31.000 -22.00? -261,000 106.000 rofit (loss) Quick Study 5-2
What does service based business sell? How do we calculate its gross profit?
Kleiner Merchandising Company Accumulated depreciation $ Beginning inventory Ending Inventory Expenses Net Purchases Net Sales 700 8,500 4,500 1.800 9,500 16,500 Krug Service Company Expenses $ 8,100 Revenues 21,000 Cash 600 Prepaid rent Accounts payable 200 Equipment 1,900 640 Required: a. Compute gross profit, the goods available for sale, and the cost of goods sold for the merchandiser Hint Not all information may be necessary b. Use the above information from a service company and from a merchandiser to compute...
Kleiner Merchandising Company Accumulated depreciation $ Beginning inventory Ending Inventory Expenses Net Purchases Net Sales 700 8,500 4,500 1,800 9,500 16,500 $ 8. 100 21,000 Krug Service Company Expenses Revenues Cash Prepaid rent Accounts payable Equipment 600 640 200 1.900 Required: a. Compute gross profit, the goods available for sale, and the cost of goods sold for the merchandiser. Hint Not all information may be necessary b. Use the above information from a service company and from a merchandiser to...
LOL. What are merchandising operations a) List and describe the operating cycle of a merchandising business: b) In your own words, define Cost of Goods Sold? c) In your own words, define Gross Profit and how is it calculated? a) What is the difference between the period and perpetual inventory systems? LO2. How are purchases of merchandise inventory recorded in a perpetual inventory system a) Using the perpetual system, Journalize for: a) the purchase of merchandise inventory of $1,000 on...
Most questions answered within 3 hours.
-
Let X be a continuous random variable whose PDF is Let X be a
continuous random...
asked 31 seconds from now -
A football with a mass of 1.2 kg is kicked from ground level to
a height...
asked 3 minutes ago -
Remember: Changes in supply determinants shift supply, and
changes in demand determinants shift demand. We say...
asked 1 minute ago -
Why is the answer b), for this question? I came up with C) for
my incorrect...
asked 7 minutes ago -
Suppose that you know that in the population of full-time
employees in the United States, the...
asked 29 minutes ago -
This experiment was designed originally to sample various meat and carcass quality
aspects of Ontario pigs...
asked 30 minutes ago -
Dopamine Hydrochloride: draw the structure And Show the
functional groups in different colors and label the...
asked 22 minutes ago -
A rope supports a 10 kg dumbbell hanging from it. What is the
tension in the...
asked 21 minutes ago -
) Raw materials are studied for contamination. Suppose that
the number of particles of contamination per...
asked 44 minutes ago -
After running a regression analysis we calculated an F test and
the significance level was 0.15....
asked 40 minutes ago -
----Can someone please help me solve this one using JAVA
----I thank you in advance
Create...
asked 44 minutes ago -
1. What force primarily attracts the potassium ion to
the nitrate ion?
a. London forces...
asked 46 minutes ago