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As the accountant of Fun Slide Co., you have been asked to calculate Net sales Cost of merchandise sold Gross profit Net income from the following: gross sales, $45,000 sales returns, $2000 beginning inventory, $5,000 net purchases, $8,000 ending inventory, $2,000 operating expenses, $9,200 Please explain the steps you take for your calculations

As the accountant of Fun Slide Co., you have been asked to calculate Net sales Cost of merchandise sold Gross profit Net income from the following: gross sales, $45,000 sales returns, $2000 beginning inventory, $5,000 net purchases, $8,000 ending inventory, $2,000 operating expenses, $9,200 Please explain the steps you take for your calculations

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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As the accountant of Fun Slide Co., you have been asked to calculate

  1. Net sales
  2. Cost of merchandise sold
  3. Gross profit
  4. Net income

from the following:

  • gross sales, $45,000
  • sales returns, $2000
  • beginning inventory, $5,000
  • net purchases, $8,000
  • ending inventory, $2,000
  • operating expenses, $9,200

Please explain the steps you take for your calculations

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