Ss.115. Exercise 3: The following information is given for ErwinCompany for 19X6: net sales $52,000, net purchases $33,000,ending inventory $12,000, beginning inventory $9,000,operating expenses $5,000.Compute:a. Cost of goods soldb. Gross profitExercise 4: The following information is given for NorthwestCompany for 19X1: sales $6,300, purchases $7,100,beginning inventory $600, ending inventory $2,000, salesdiscounts $120, purchase discounts $160, sales returns andallowances $300, purchase returns and allowances $190,operating expenses $1,400.Compute:a. Net salesb. Net purchasesc. Cost of goods soldd. Gross margine. Net income or loss

Introduction:- Net sales is the sum of gross sales minus its sales returns, allowances, and any…

Exercise 3: The following information is given for Erwin Company for 19X6: net sales $52,000, net purchases $33,000, ending inventory $12,000, beginning inventory $9,000, operating expenses $5,000. Compute: a. Cost of goods sold b. Gross profit

Exercise 3: The following information is given for Erwin Company for 19X6: net sales $52,000, net purchases $33,000, ending inventory $12,000, beginning inventory $9,000, operating expenses $5,000. Compute: a. Cost of goods sold b. Gross profit

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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Question

Ss.115.

Exercise 3: The following information is given for Erwin
Company for 19X6: net sales $52,000, net purchases $33,000,
ending inventory $12,000, beginning inventory $9,000,
operating expenses $5,000.
Compute:
a. Cost of goods sold
b. Gross profit
Exercise 4: The following information is given for Northwest
Company for 19X1: sales $6,300, purchases $7,100,
beginning inventory $600, ending inventory $2,000, sales
discounts $120, purchase discounts $160, sales returns and
allowances $300, purchase returns and allowances $190,
operating expenses $1,400.
Compute:
a. Net sales
b. Net purchases
c. Cost of goods sold
d. Gross margin
e. Net income or loss

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