As at 31 December 2014 the records are as follows: At the beginning of the year Accounts Receivable was $100,000, Inventory was $200,000, and Accounts Payable was $110,000. At the end of the year Accounts Receivable were $115,000 and Accounts Payable was $88,000. A physical stocktake at 31 December 2014 revealed that inventory costing $100,000 was on hand. Cash received from customers was $2,000,000. Cash paid to suppliers was $1,808,000. The gross profit for the year ending 31, December 2014 is: a. $140,000 b. $300,000 c. $229,000 d. $129,000 e. None of the above.

As at 31 December 2014 the records are as follows: At the beginning of the year Accounts Receivable was $100,000, Inventory was $200,000, and Accounts Payable was $110,000. At the end of the year Accounts Receivable were $115,000 and Accounts Payable was $88,000. A physical stocktake at 31 December 2014 revealed that inventory costing $100,000 was on hand. Cash received from customers was $2,000,000. Cash paid to suppliers was $1,808,000. The gross profit for the year ending 31, December 2014 is: a. $140,000 b. $300,000 c. $229,000 d. $129,000 e. None of the above.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...

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