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 Fales discounts ales returns and allowances Lt December 31, 2010, Rachael Ray determines that its ending inventory is $60,000. $ 4,000 500,000 6,000 2,000 800,000 5,000 10,000
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 Fales discounts ales returns and allowances Lt December 31, 2010, Rachael Ray determines that its ending inventory is $60,000. $ 4,000 500,000 6,000 2,000 800,000 5,000 10,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text: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.
$ 4,000
500,000
6,000
2,000
800,000
5,000
10,000
At December 31, 2010, Rachael Ray determines that its ending inventory is $60,000.
Freight-in
Purchases
Purchase discounts
Purchase returns and allowances
Sales
Sales discounts
Sales returns and allowances
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
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