Joe's Grocery Store, a calendar year taxpayer, had ending inventory of $160,000 on December 31st of the tax year. During theyear, the store purchased additional inventory of $415, 000. If cost of goods sold for the year was $470,000, what was thebeginning inventory?A. $55,000.B. $215,000.C. $255,000.D. $310,000.

Above solution is based on below :Beginning Inventory xx Add: Purchases xx Total Goods Available for…

Answered: Joe's Grocery Store, a calendar year…

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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The following transactions apply to Ozark Sales for Year 1: The business was started when the company received $48,000 from the issue of common stock. Purchased merchandise inventory of $176,000 on account. Sold merchandise for $202,000 cash (not including sales tax). Sales tax of 7 percent is collected when the merchandise is sold. The merchandise had a cost of $127,000. Provided a six-month warranty on the merchandise sold. Based on industry estimates, the warranty claims would amount to 4 percent of sales. Paid the sales tax to the state agency on $152,000 of the sales. On September 1, Year 1, borrowed $21,500 from the local bank. The note had a 5 percent interest rate and matured on March 1, Year 2. Paid $6,000 for warranty repairs during the year. Paid operating expenses of $55,500 for the year. Paid $124,300 of accounts payable. Recorded accrued interest on the note issued in transaction number 6. b1. Prepare the journal entries for the preceding transactions.b2. Post…
Don Pedro has not kept accurate accounting records during the financial year. He had opening inventory of $6,700. Additional goods were purchased during the year. At the year end he had $5,400 left in inventory. Total sales was $102,360 All sales are made at a mark up on cost of 20%. What is Don Pedro’s gross profit for the year? a. $13,750 b. $17,060 c. $16,540 d. $20,675
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Traylor Corporation began the year with three items in beginning inventory, each costing $5. During the year Traylor purchased five more items at a cost of $6 each and then two more items at a cost of $7 each. Traylor sold eight items for $10 each. If Traylor uses a periodic LIFO system, what would be Traylor’s gross profit for this year? 45 $45 $80 $80 $51 $51 $36
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. Presented below is the 2019 income statement for Billie's Baubles. The tax rate was 35% in 2019. Income statement for the period ended 12/31/19 Sales Less: Cost of goods sold Less: Depreciation Gross profit Less: S, G & A expenses Operating profit Less: Interest expense Profit before tax Less: Tax expense Net income $400 100 50 250 100 150 $31.05 $61.95 $87.95 $92.50 7 143 40 $103 Assume that the change in capital expenditures for 2019 was $30 and the change in net working capital was $25. What was Billie's Baubles' Free Cash Flow (FCF) for 2019?
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2 Nunez Company, a retail hardware store, began business in August and elected a calendar year for tax purposes. From August through December, Nunez paid $319,000 for inventory to stock the store. According to a physical inventory count on December 31, Nunez had $64,600 of inventory on hand. Required: a. Compute Nunez's cost of goods sold for its first year assuming Nunez adopted the cash method as its overall method of accounting. b. Compute Nunez's cost of goods sold for its first year assuming Nunez adopted the accrual method as its overall method of accounting. Complete this question by entering your answers in the tabs below. Required A Required B Compute Nunez's cost of goods sold for its first year assuming Nunez adopted the cash method as its overall method of accounting. Cost of goods sold

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