acc 205 chapter 6 case 2 answer

acc 205 chapter 6 case 2 answer - Suppose you own Campbell...

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Unformatted text preview: Suppose you own Campbell Appliance. The store's summarized financial statements for 2008, the most recent year are as follows: Campbell Appliance Income Statement Year Ended December 31, 2008 (In Thousands) Sales $ 800 Cost of Goods Sold 660 Gross Profit 140 Operating Expense 100 Net Income $ 40 Campbell Appliance Balance Sheet December 31, 2008 (Thousands)Assets Cash $30 Investments 75 Land and buildings, net 360 Total assets $465 Liabilities and Capital Accounts payable $ 35 Note payable 280 Total liabilities 315 Owner, capital 150 Total liabilities and capital $465 Now assume that you need to double your net income. To accomplish your goal, it will be very difficult to raise the prices you charge because there is a Best Buy nearby. Also, you have little conrol over your cost of goods sold because the appliance manufacturers set the price you must pay. Identify several strategies for cost of goods sold because the appliance manufacturers set the price you must pay....
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