Brad Pham Works as a Department Manager in a Computer

question 34

Short Answer

Brad Pham works as a department manager in a computer products store. One particular fax machine sells for $212.40. Management told Pham that the markup on this fax machine was 45% based on selling price. Calculate the cost of the machine.

---

Definitions:

Capital Reserve

Funds set aside from a company's profits for future investments or to cover anticipated liabilities or losses.

U.S.GAAP

United States Generally Accepted Accounting Principles, which are the set of accounting standards used for financial reporting in the U.S.

Accrual-Basis

An accounting method that records income and expenses when they are earned or incurred, regardless of when the cash is actually received or paid.

Cash-Basis

An accounting method where revenues and expenses are recorded when they are actually received or paid, not when they are incurred.