Whenever bianca travels to italy, she brings back gucci bags to sell to her friends. the bags she buys in italy are purchased at a 60 percent discount off american prices. she sells the bags to her friends at a price 25 percent higher than what she paid for them. after one trip, she sells bags to her friends that would have cost $4000 in american stores. what is bianca’s profit per bag?

Bianca’s profit per bag is $4,000

Explanation:

The computation is shown below:

The actual value paid by the Bianca = Cost of bag × remaining percentage

                                                        = $4,000 × 40%

                                                        = $1,600

Then it sold 25% higher

So, = Actual value × (100 + profit percentage)

     = $1,600 × (100 + 25%)

     = $2,000

So, the profit would equal to

= $2,000 - $1,600

= $400

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

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explanation: