4. On January 1, 2010, Rachael Ray Corporation had merchandise inventory of $50,000. At December 31, 2010, Rachael Ray had the following account balances. Freight-in Purchases Purchase discounts Purchase returns and allowances Sales Sales discounts $ 4,000 500,000 6,000 2,000 800,000 5,000 10,000 Sales returns and allowances At December 31, 2010, Rachael Ray determines that its ending inventory is $60,000. Instructions (a) Compute Rachael Ray's 2010 gross profit. (b) Compute Rachael Ray's 2010 operating expenses if net income is $130,000 and there are no non-operating activities
4. On January 1, 2010, Rachael Ray Corporation had merchandise inventory of $50,000. At December 31, 2010, Rachael Ray had the following account balances. Freight-in Purchases Purchase discounts Purchase returns and allowances Sales Sales discounts $ 4,000 500,000 6,000 2,000 800,000 5,000 10,000 Sales returns and allowances At December 31, 2010, Rachael Ray determines that its ending inventory is $60,000. Instructions (a) Compute Rachael Ray's 2010 gross profit. (b) Compute Rachael Ray's 2010 operating expenses if net income is $130,000 and there are no non-operating activities
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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