Determine Net Sales, Cost of goods sold and Net Income. Additional information follows:• Return on total assets is 16% (average total assets is $62,500).•Inventory turnover is 5 (average inventory is $7,800).• Accounts receivable turnover is 8 (average accounts receivable is $7,700).Net salesCost of goods soldIncome StatementSelling, general, and administrative expenses8,800Income tax expense3,800Net income

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Answered: Determine Net Sales, Cost of goods sold…

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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Use the following information to compute net income. The income tax rate is 40%. Cost of Goods Sold Interest Expense $4,000 1,100 Selling and Administrative Expense 1,750 Sales Dividends a) $1,470 b) $1,890 c) $1,190 d) $1,260 e) $980 10,000 700
AB Ltd. has MCC has prepared the Income statement including the following data (all sales are on account): Sales $80,000 Cost of Goods Sold Gross Profit Expenses Net Profit $50,000 $ 25,000 $ 10,000 $15,000 The comparative balance sheet shows the following data (by definition, accounts payable relates to merchandise purchases only): End of Year Beginning of Year Accounts Receivables (net) Inventory Prepaid Expenses Accounts Payable $7,000 $3,000 $2,000 $1,140 $5,280 $2,000 $1,000 $1,500 Required 1: What is the amount of Cash received from Customers? $ Required 2: What is the amount of Cash paid for merchandise purchase? $
Perform a vertical analysis for the entry "Gross Sales" on the portion of an income statement shown below (as a %). (Round to nearest tenth.) *Chart is attached with the information*
Enter the missing dollar amounts for the income statement for each of the following independent cases. (Hint: In Case B, work from the bottom up.) Net sales revenue Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross profit Expenses Pretax income (loss) $ Case A $ 11,010 4,900 10,310 7,530 220 $ 1,710 $ Case B 6,590 15,240 10,900 $ 1,500 (570) $ Case C $ 3,840 9,340 13,180 $ 6,040 4,360 520 1,160
Complete the following Common Size Income Statement: Amount Percent Sales $14,000 ___________ (b) Cost of Goods Sold 9,000 ___________ (c) Gross Profit 5,000 ___________ (d) Operating Expenses 2,000 ___________ (e) Net Income _________ (a) ____________ (f)
Compute the following transactions using multi-step income statement 1. Calculate Net Sales and Gross Profit if, Sales are Php 375,000, Sales Returns and Allowances arePhp32,000, Sales Discounts are Php 12,000 and Cost of MerchandiseSold is Php 255,000.
Using the following information, what is the amount of net income? Purchases $ 25,599 Selling expenses $ 838 Merchandise inventory, September 1 6,382 Merchandise inventory, September 30 11,356 Administrative expenses 765 Sales 47,294 Rent revenue 908 Interest expense 1,144 O a. $27,118 Ob. $24,830 Oc. S18,448 Od. S36,186
During the current year, merchandise is sold for $54,900 cash and for $80,900 on account. The cost of the goods sold is $88,270. What is the amount of the gross profit?
A company reported the following: Cost of Goods Sold General, Selling, and Administrative Expenses Income Tax Expense Inventory Net Income Sales Revenue Sales Discounts Sales Returns & Allowances What is the amount of gross profit? Multiple Choice $108,360 $98,950 $121,000 $203, 200 53,120 3,920 16,500 26,080 292,000 3,040 2,640
From the following, calculate (A) net sales, (B) gross profit, (C) total operating expenses, and (D) net income: sales returns $700, rent expense $1,288, sales discounts $950, depreciation expense $600, cost of merchandise sold $7,600, gross sales $20,900, advertising expense $1,650, salary expense $2,900, and heat expense $900.
Using the following information, what is the amount of gross profit? Purchases $ 30,526 Selling expense $ 769 Inventory, September 1 5,755 Inventory, September 30 10,605 Administrative expense 732 Sales 56,096 Rent revenue 984 Interest expense 1,159 $25,676 $29,932 $30,420 $1,159
Compute the following transactions using multi-step income statement 3. Calculate Sales and Net Sales if, Sales Returns and Allowances are Php 25,000,Sales Discounts are Php 15,000, Cost of Merchandise Sold is Php 620,000 and GrossProfit is Php 185,000.

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