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profit of are its operating expenses? 17. Identify the distinguishing features of an income statement for a merchandising company. 18. Identify the sections of

profit of are its operating expenses? 17. Identify the distinguishing features of an income statement for a merchandising company. 18. Identify the sections of

FINANCIAL ACCOUNTING
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 17

**Text Transcription:** 15. Cuperty Co. has net sales of $105,000, cost of goods sold of $70,000, and operating expenses of $20,000. What is its gross profit and its gross profit rate? 16. Stefan Page Company reports net sales of $800,000, gross profit of $370,000, and net income of $240,000. What are its operating expenses? 17. Identify the distinguishing features of an income statement for a merchandising company. 18. Identify the sections of a multiple-step income statement that relate to (a) operating activities, and (b) nonoperating activities. 19. How does the single-step form of income statement differ from the multiple-step form? 20. What title does Apple use for gross profit? By how much did its 2019 gross profit change, and in what direction, when compared to 2018? *21. Indicate the columns of the worksheet in a perpetual system in which (a) inventory and (b) cost of goods sold will be shown. *22. Identify the accounts that are added to or deducted from Purchases in a periodic system to determine the cost of goods purchased. For each account, indicate whether it is added or deducted. *23. On July 15, a company purchases on account goods costing $3,000 with credit terms of 2/10, n/30. On July 18, the company receives a $200 credit memo from the supplier for damaged goods. Give the journal entry on July 24 to record payment of the balance due within the discount period, assuming a periodic inventory system. --- **Diagrams/Graphs Explanation:** The lower section shows a table for determining the cost of goods sold. The components described are: - **Purchases:** $100,000 - **Cost of Goods Available for Sale:** ? - **Ending Inventory:** $25,000 - **Cost of Goods Sold:** $120,000 The table includes placeholders (indicated by "?") where additional information or calculations would be completed to determine the "Cost of Goods Available for Sale."
Transcribed Image Text:**Text Transcription:** 15. Cuperty Co. has net sales of $105,000, cost of goods sold of $70,000, and operating expenses of $20,000. What is its gross profit and its gross profit rate? 16. Stefan Page Company reports net sales of $800,000, gross profit of $370,000, and net income of $240,000. What are its operating expenses? 17. Identify the distinguishing features of an income statement for a merchandising company. 18. Identify the sections of a multiple-step income statement that relate to (a) operating activities, and (b) nonoperating activities. 19. How does the single-step form of income statement differ from the multiple-step form? 20. What title does Apple use for gross profit? By how much did its 2019 gross profit change, and in what direction, when compared to 2018? *21. Indicate the columns of the worksheet in a perpetual system in which (a) inventory and (b) cost of goods sold will be shown. *22. Identify the accounts that are added to or deducted from Purchases in a periodic system to determine the cost of goods purchased. For each account, indicate whether it is added or deducted. *23. On July 15, a company purchases on account goods costing $3,000 with credit terms of 2/10, n/30. On July 18, the company receives a $200 credit memo from the supplier for damaged goods. Give the journal entry on July 24 to record payment of the balance due within the discount period, assuming a periodic inventory system. --- **Diagrams/Graphs Explanation:** The lower section shows a table for determining the cost of goods sold. The components described are: - **Purchases:** $100,000 - **Cost of Goods Available for Sale:** ? - **Ending Inventory:** $25,000 - **Cost of Goods Sold:** $120,000 The table includes placeholders (indicated by "?") where additional information or calculations would be completed to determine the "Cost of Goods Available for Sale."
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