For each of the following formulas, select the correct name of the formula:1. **Sales Revenue - Sales Returns and Allowances - Sales Discounts =** [ Select ]2. **Net Sales - Cost of Goods Sold =** [ Select ]3. **Beginning Inventory + Cost of Goods Purchased = Cost of Goods Available for Sale - Ending Inventory =** [ Select ]4. **Net Sales - Cost of Goods Sold - Operating Expenses =** [ Select ]The options in the dropdown menu for these formulas are:- Income from operations- Gross profit- Net sales- Cost of Goods Sold Use these options to identify the correct names for each formula listed above.

The given formulas are matched below:

Answered: For each of the following formulas,…

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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Explain in 175 words: Explain how the inventory valuation method (LIFO or FIFO) chosen by a company affects the cost of goods sold and net income if prices are rising. What if the prices are declining?
PART 1: Raw Materials Inventory Turnover A. How is this ratio calculated? What does the ratio show? Using the data below (Sunn Corporation) , calculate and discuss the implications of Sunn's RM Inventory Turnover. Days' Sales in Raw Materials Inventory B. How is this ratio calculated? What does the ratio show? Using the data below (Sunn Corporation) calculate and discuss the implications of Sunn's Days' Sales in RM Inventory
The equation for Gross Profit is "Gross Profit = Revenues - Cost of Goods." Which of the following would increase the Gross Profit?
Indicate the effects on gross profit the changes in volume, unit selling price, and unit cost. Write an “X” on the appropriate and explained Effects in Gross Profit Favorable Unfavorable A. Volume - Increase - Decrease B. Selling Price – Increase - Decrease C. Unit Cost - Increase - Decrease
PA3. 10.2 Trini Company had the following transactions for the month. Number of Units Cost per Unit Total Beginning inventory Purchased May 31 Purchased Jul. 15 Purchased Nov. 1 1,050 1,020 1,300 1,200 4,570 900 $ 23,100 23,460 33,800 32,400 112,760 $22 23 26 27 Totals (goods available) Ending inventory ? Calculate the cost of goods sold dollar value for the period for each of the following cost allocation methods, using periodic inventory updating. Provide your calculations. A. first-in, first-out (FIFO) B. last-in, first-out (LIFO) C. weighted average (AVG)
The gross margin estimation method estimates the cost of goods sold by multiplying the costs to sales ratio by purchases. O multiplying the sales revenue by the inventory turnover ratio. multiplying the cost of goods available by the gross margin percentage. O multiplying the sales revenue by cost-to-sales ratio.
Concept introduction Gross profit ratio: Gross profit ratio calculated by dividng the gross profit by sales.The formula to calculate the gross profit ratio is as follows: Gross profit = Gross profit/sales Gross profit is calculated using the following formula: Gross profit= Sales-Cost of Goods Sold To choose: The correct term for excess of sales over the cost of goods sold.
Complete the chart using the LIFO and FIFO costing methods, assuming a period of increasing costs: Highest Amount Lowest Amount Cost of Merchandise Sold Gross Profit Net Income Ending Merchandise Inventory
Gross profit will result if: O Sales revenues are greater than operating expenses. Operating expenses are greater than cost of goods sold. Sales revenues are greater than cost of goods sold. O Operating expenses are less than net income.
Which inventory valuation model serves as a middle-of-the-road approach for taxes and income? a.Last-in, First-out b.First-in, First-out c.Average-cost d.Specific-unit-cost
Inventory Turnover Ratio shows the speed at which the inventory will be converted into sales. Select one: True False
Cont of pictures: Calculate gross profit rate under each of the following methods 1. LIFO 2. FIFO 3. Average-cost (Round answers to 1 decimal place, e.g. 51.2%)

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