Kelvin Enterprises has the following reported amounts: Sales revenue $620,000 Sales returns and allowances $20,000 Cost of goods sold (COGS) $400,000 $150,000 Operating expenses Requirements: a) Compute net sales. b) Compute gross profit. c) Compute income from operations. d) Compute the gross profit rate.
Kelvin Enterprises has the following reported amounts: Sales revenue $620,000 Sales returns and allowances $20,000 Cost of goods sold (COGS) $400,000 $150,000 Operating expenses Requirements: a) Compute net sales. b) Compute gross profit. c) Compute income from operations. d) Compute the gross profit rate.
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 22Q: The following is select account information for August Sundries. Sales: $850,360; Sales Returns and...
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Kelvin enterprises has the following reported amounts
Transcribed Image Text:Kelvin Enterprises has the following reported
amounts:
Sales revenue
$620,000
Sales returns and allowances $20,000
Cost of goods sold (COGS)
$400,000
$150,000
Operating expenses
Requirements:
a) Compute net sales.
b) Compute gross profit.
c) Compute income from operations.
d) Compute the gross profit rate.
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