PLEASE DO NOT PROVIDE HAND WRITTEN ANSWER The following information for 2019 is available for Marino Company: The beginning inventory is $106,000. Purchases returns of $4,000 were made. Purchases of $288,000 were made on terms of 2/10, n/30. Eighty percent of the discounts were taken. At December 31, purchases of $28,000 were in transit, FOB destination, on terms of 2/10, n/30. The company made sales of $642,000. The gross selling price per unit is twice the net cost of each unit sold. Sales allowances of $5,000 were made. The company uses the LIFO periodic method and the gross method for purchase discounts. Required: 1. Compute the cost of the ending inventory before the physical inventory is taken. Ignore Sales allowances in your computations. $fill in the blank 1 2. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beginning inventory. Cost of sales from purchases $fill in the blank 2 Cost of sales from beginning inventory fill in the blank 3 Total cost of goods sold $fill in the blank 4
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
PLEASE DO NOT PROVIDE HAND WRITTEN ANSWER
The following information for 2019 is available for Marino Company:
The beginning inventory is $106,000.
Purchases returns of $4,000 were made.
Purchases of $288,000 were made on terms of 2/10, n/30. Eighty percent of the discounts were taken.
At December 31, purchases of $28,000 were in transit, FOB destination, on terms of 2/10, n/30.
The company made sales of $642,000. The gross selling price per unit is twice the net cost of each unit sold.
Sales allowances of $5,000 were made.
The company uses the LIFO periodic method and the gross method for purchase discounts.
Required:
1. Compute the cost of the ending inventory before the physical inventory is taken. Ignore Sales allowances in your computations.
$fill in the blank 1
2. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beginning inventory.
| Cost of sales from purchases | $fill in the blank 2 |
| Cost of sales from beginning inventory | fill in the blank 3 |
| Total cost of goods sold | $fill in the blank 4 |
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