Using the direct write-off approach for bad debts, this write-off will not impact the company's net income, nor will it affect total assets.
The answer is stockkeeping unit. Within the context of inventory management, a stockkeeping unit (SKU) refers to a particular item stored in a specific location. SKUs represent the most detailed level in inventory discussions, with the items within a distinct SKU being indistinguishable from one another. The development of the SKU concept has streamlined many inventory control processes. Although SKUs can sometimes pertain to intangible items, such as warranties, this explanation will concentrate on those related to tangible goods.
Answer:
1. The return on investment is 20%
2. The total is $40,000
Explanation:
1. The formula for Return on Investment is defined as Net income from the Investment divided by the investment amount.
The net income mentioned in the question is the after-tax profit of $20,000.
The total amount Amelia invested in Goodies Gift Shop is reflected as owner's equity at $100,000 in the balance sheet for Year 2.
Using the formula: Return on Investment = 20,000/100,000 = 20%
2. We can calculate the projected pre-tax profit as follows: Projected margin minus total overhead = 250K - 200K = $50,000
Thus, the after-tax profit is computed as pre-tax profit multiplied by (1 minus tax rate) = 50K x (1-20%) = $40,000
