Travis Dorso-Unit 2 Assignment

Travis Dorso-Unit 2 Assignment - 1. $850,000 dollars out of...

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Revenues Sold Components $850,000.00 Accounts Receivable $150,000.00 $1,000,000.00 Expenses Cost of sales Raw materials $400,000.00 Sales Staff Wages $100,000.00 Operating costs Depreciation - truck $2,000.00 Rent $12,000.00 Salaries for manufacturing $190,000.00 $704,000.00 Net Income $296,000.00 (3)Drysdale Company Income Statement For Period Ended Month Day Year 1. $850,000 dollars out of the $1,000,000 dollars would be consider under cash basis revenue while the full $1,000,000 would be considered accrual basis. 2. The matching principle states that revenues of a particular period should be matched with all the costs necessary to generate that revenue. The purchase of raw materials is a cost incurred resulting in an unexpired cost that is made into components which are sold, resulting in an expired cost . The truck purchase is an unexpired cost resulting in a depreciation expense, which is an expired cost . Rent is an expired cost.
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1. Calculating Gross Profit Ratios for Apple Computer and Hewlett-Packard
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This note was uploaded on 01/26/2012 for the course BUSINESS Accounting taught by Professor N/a during the Spring '11 term at Kaplan University.

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Travis Dorso-Unit 2 Assignment - 1. $850,000 dollars out of...

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