Using the Selected Information Given Below for Bliss Company, Calculate

question 9

Essay

Using the selected information given below for Bliss Company, calculate return on assets, debt ratio, and profit margin. Comment on the results of operations and the financial position of the company for the year.
Return on assets = ($950,000-795,000)/((1,900,000+1,500,000)/2) =9.1%
Debt ratio=$850,000/1,900,000=44.7%
Profit margin=$155,000/950,000=16.3%

Understand the conditions under which a court will uphold contracts for sale or lease of goods.

Recognize the concept of unconscionability and its relation to the Uniform Commercial Code.

Identify how additional terms affect acceptance under the Uniform Commercial Code.

Comprehend the principles judges use to interpret the UCC in agreement disputes.

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Definitions:

Ending Inventory

At the close of an accounting period, the valuation of merchandise ready for sale is identified by summing up the initial inventory with buys and deducting the expense of goods sold.

Ending Inventory

The total value of all inventory a company has in stock at the end of an accounting period, which is used to calculate the cost of goods sold.

Operating Expenses

The costs associated with running the day-to-day operations of a business, excluding the cost of goods sold.

Gross Profit

The difference between revenue and the cost of goods sold, indicating how efficiently a company produces goods or services.