please answer 1 & 2 only and show solutions thank you Problem 2. Lee Company reported the following data for the current year:1. How much is the gross profit?2. How much is the administrative expense?3. How much is the selling expense?4. How much is the net income? Legal and audit feesRent for office space, share equally by the administrative andsales offices700,0002,400,000600,0001,500,000850,000650,000250,00050,00075,000Delivery expenseOffice salariesInsuranceSales representative salariesSales discountDepreciation expense- sales equipmentDepreciation expense- office equipmentAdvertising expenseSales commission expense150,000350,00015,500,0006,500,000SalesCost of goods sold

Gross profit is computed after deducting all operating expenses from the sales. The operating…

Answered: 1. How much is the gross profit? 2. How…

Business

Accounting

1. How much is the gross profit? 2. How much is the administrative expense?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

please answer 1 & 2 only and show solutions thank you

Problem 2. Lee Company reported the following data for the current year:
1. How much is the gross profit?
2. How much is the administrative expense?
3. How much is the selling expense?
4. How much is the net income?

Legal and audit fees
Rent for office space, share equally by the administrative and
sales offices
700,000
2,400,000
600,000
1,500,000
850,000
650,000
250,000
50,000
75,000
Delivery expense
Office salaries
Insurance
Sales representative salaries
Sales discount
Depreciation expense- sales equipment
Depreciation expense- office equipment
Advertising expense
Sales commission expense
150,000
350,000
15,500,000
6,500,000
Sales
Cost of goods sold

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