3. Esther has a small store. Last month, she purchased merchandise costing P75 000.00 for which she paid freight of P7 500.00. She sold 60% of the merchandise for P68 000.00 after spending for various expenses totalling P13 000.00. She also paid P2 000.00 for interest on money she borrowed for her store. a. How much was her cost of sales? b. How much gross profit did she make? c. How much operating profit did she make? d. What was her net profit?

3. Esther has a small store. Last month, she purchased merchandise costing P75 000.00 for which she paid freight of P7 500.00. She sold 60% of the merchandise for P68 000.00 after spending for various expenses totalling P13 000.00. She also paid P2 000.00 for interest on money she borrowed for her store. a. How much was her cost of sales? b. How much gross profit did she make? c. How much operating profit did she make? d. What was her net profit?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Patel Supply is considering a contract to sell merchandise to a hair salon chain for $29,000. This…

A: The objective of this question is to calculate the increase or decrease in Patel Supply's gross…

Q: During the current year, merchandise is sold for $95,500 cash and $1,315,000 on account. The cost of…

A: Gross margin (gross profit):Gross margin is the amount of revenue earned from goods sold over the…

Q: What is its average collection period?

A: Companies sold their products on cash as well as credit. Credit sales are recorded as receivables or…

Q: Kay Darling receives 2% of eBay sales plus $1.85 for each item she lists through her eBay listing…

A: Kay Darling receives 2% of eBay sales plus $1.85 for each item she lists through her eBay listing…

Q: Darlene Jaworski purchases an $84.00 calculator, a gold chain for $42.50, and a book for $13.80. The…

A: Formula: Total purchases = Calculator cost + Gold chain + Book cost

Q: Maria purchased items at a grocery store. The items totaled to $67.89 before taxes. After paying the…

A: Tax compliance is a mandatory financial charge or other type of levy imposed on a taxpayer by a…

Q: 5. Carter's Coats had sales of $500,000 in 2022. The Cost of goods sold for 2022 was $250,000.…

A: Adjusting Entries are journal entries that are made ausually made at the end of an accounting period…

Q: Elsa bought some kitchen supplies from an online store. For shipping the store charges 68.65 flat…

A: Shipping charges are transportation charges that are to be paid on purchasing a product. It is…

Q: Answer this question

A: Definition of Gross MarginGross margin is a financial metric that represents the percentage of sales…

Q: I want to answer this question

A: Step 1: Introduction to the Net salesThe income statement is the financial report prepared to…

Q: Information related to Swifty Co. is presented below. 1. 2. 3. 4. 5. On April 5, purchased…

A: Cost of goods Sold is the cost incurred by the company to selling the goods to the customers. It is…

Q: Marissa paid $203.57 for a printer that she purchased after receiving trade discounts of 24%, 18%,…

A: List price of the printer =amount paid / (1-discount1)*(1-discount2)*(1-discount3)

Q: am. 113.

A: Explanation:Purchase inventory: We increase Accounts Payable by $39,000 (liability increase) and…

Q: During the current year, merchandise is sold for $366,100 cash and $1,420,000 on account. The cost…

A: Gross margin (gross profit): Gross margin is the amount of revenue earned from goods sold over the…

Q: Susanne purchased merchandise with a net price of $347,500 with terms of sale of 4/15, n30. He makes…

A: Formula: Outstanding balance due at the end of credit period = Total Purchase price - Cash paid

Q: At J&J Department Store, Sam Dodson purchases a cassette tape player for 588.98 and three tapes for…

A: Calculation of Sales tax on Sam's purchases Sales tax on purchases = Total amount of purchases X…

Q: A clothing merchant purchases a shipment of clothes for $37,000.00 with discounts of 11% and 5%. He…

A: The net purchase price is the actual cost paid by a buyer for a product or service after deducting…

Q: JellyFelly sold a lamp to a cash customer, the retail price was $299.99 and sales tax is 9%. The…

A: Sales tax is applicable on the sales price of the goods at a prescribed rate. Sales tax is…

Q: för $140.00. IS 5%. a. What is the total selling price? b.. What is the sales tax?

A: Total selling price= Selling price * {1+(sales tax rate/100)) Sales tax= Selling price * Sales tax…

Q: the information below, what was the net income from all of the May transactions? May 5: Kesha…

A: Journal Entries: Date Accounts Title and Explanation Debit Credit May 5 Inventory 6000…

Q: 4. Foster Supplies is considering a contract to sell merchandise to a hair salon chain for $49,000.…

A: Gross profit means the difference between the sale revenue and cost of goods sold where as operating…

Q: A store had receipts of $6045.50. If the sales tax rate is 7%, how much merchandise did the store…

A: The value of merchandise sold is the gross value of merchandise sold without considering sales tax…

Q: Sharleen purchased merchandise with a list price of $27,985. She receives a 2% cash discount and a…

A: Discount period is the time which is given to a customer to avail a discount. If the customer pays…

Question

100%

3. Esther has a small store. Last month, she purchased
merchandise costing P75 000.00 for which she paid freight of
P7 500.00. She sold 60% of the merchandise for P68 000.00
after spending for various expenses totalling P13 000.00. She
also paid P2 000.00 for interest on money she borrowed for her
store.
a. How much was her cost of sales?
b. How much gross profit did she make?
c. How much operating profit did she make?
d. What was her net profit?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2 Part a

Step 3 Part b

Step 4 Part c

Step 5 Part d

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Windsor's Boutique has total receipts for the month of $27510 including sales taxes. If the sales tax rate is 5%, what are Windsor's sales for the month? $26200 $26135 $27510 It cannot be determined.
Target sold $150,000 of merchandise at one of its stores on Saturday. It collected $100,000 cash for these sales. Their customers charged the rest. It cost Target $80,000 to acquire the merchandise they sold. How much revenue did Target have on Saturday under accrual-based accounting? Group of answer choices $100,000 $20,000 $70,000 $150,000
2 A storekeeper bought merchandise for $2940. If she sells the merchandise at 16% above cost, how much gross profit does she make? Her gross profit is $ (Type an integer or a decimal)
A certain person bought merchandise for $ 3,500 with conditions or terms of payment of 5/10, n / 30. In order to pay within the discount period, she took out a loan at 6% interest. How much did you save if you used the loan to pay for merchandise that had a cash discount? A. $147.77 B. $163. 92 C. $183. 94 D. $198. 23
John has opening balances on his trade receivables of £68,000 and an allowance forreceivables of £3,400. During the year John made cash sales of £146,000 and credit sales of£354,000. He collected cash from his credit customers of £340,000.At the end of the year John identified £2,000 of bad debts to write off. In addition, he estimatedthe need to increase the allowance for receivables to £4,000.A. Calculate the net trade receivables balance to present in the Statement of financial positionat the year end B. What is the total bad and doubtful expense to be charged to the Statement of Profit or lossfor the year?