A company had £270,000 in sales; £150,000 in goods available for sale; ending finished goods inventory of £30,000, and selling and administrative expenses of £65,000. Which of the following statements is true? a. Net income was 28% of sales b. The beginning finished goods inventory is not determinable. c. The costs of goods sold was £137,000 d. The gross income was £93,000
A company had £270,000 in sales; £150,000 in goods available for sale; ending finished goods inventory of £30,000, and selling and administrative expenses of £65,000. Which of the following statements is true? a. Net income was 28% of sales b. The beginning finished goods inventory is not determinable. c. The costs of goods sold was £137,000 d. The gross income was £93,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
A company had £270,000 in sales; £150,000 in goods available for sale; ending finished goods inventory of £30,000, and selling and administrative expenses of £65,000. Which of the following statements is true?
| a. | Net income was 28% of sales | |
| b. |
The beginning finished goods inventory is not determinable. |
|
| c. |
The costs of goods sold was £137,000 |
|
| d. |
The gross income was £93,000 |
Expert Solution
Step 1
The Beginning inventory can be calculated by adding up ending inventory and deducting net purchase from the cost of goods sold.
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