Zorro Company buys from wholesalers and resells a single product that costs $10 each unit. All purchases are paid in cash. There is asales commission paid of 20% on each unit sold. Sales commissions and sales proceeds are also all in cash. Each unit sells for $30. Inyear 1 the firm purchased 20,000 units and sold 15,000 units. In year 2 it purchased 20,000 units and sold 16,100 units. The firm usesFIFO inventory method for inventory costing.Required 1: Assuming no other transaction happened, the amount of gross Sales Revenue in year 2 is: $Required 2: Assuming no other transaction happened, the amount of gross margin on sales in year 2 is: $Required 3: Assuming no other transaction happened, what was the profit on sales for year 2? $

FIFO stands for "first-in, first-out," and it is an inventory accounting method that assumes that…

Required 1: Assuming no other transaction happened, the amount of gross Sales Revenue in year 2 is: $ Required 2: Assuming no other transaction happened, the amount of gross margin on sales in year 2 is: $ Required 3: Assuming no other transaction happened, what was the profit on sales for year 2? $

Required 1: Assuming no other transaction happened, the amount of gross Sales Revenue in year 2 is: $ Required 2: Assuming no other transaction happened, the amount of gross margin on sales in year 2 is: $ Required 3: Assuming no other transaction happened, what was the profit on sales for year 2? $

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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Showing 1-6 of 6 items. 1. Which of the following statements is true? Gross margin = Net sales - Cost of goods sold ONet sales + Cost of goods sold Gross margin Gross margin - Cost of goods sold = Net sales Net sales + Gross margin = Cost of goods sold
Which of the statements below is TRUE? a. Receivables turnover is accounts receivable divided by sales. b. Inventory turnover is cost of goods sold divided by accounts receivables. c. Total asset turnover is profits divided by total assets. d. A higher inventory turnover ratio signifies that inventory is moving faster.
When sales are made with a right of return, the company_ а. should recognize revenue for the full sales price b. should not recognize any revenue С. record the estimated returns in the Sales Returns account O d. records the returned asset in a separate inventory account
Gross profit minus total operating expenses is called ____________. Group of answer choices income from operations primary revenue secondary revenue other income
The equation for Gross Profit is "Gross Profit = Revenues - Cost of Goods." Which of the following would increase the Gross Profit?
I need help with the process
1. What is the Gross Profit under Multiple Step Income Statementa. 389816b. 505526c. 446773d. 972299 2. What is the total selling Expenses under multiple step income statement? a. 118295 b. 253021 c. None of the above d. 856589 3. What is Total general & Administrative Expenses under Multiple step income statement? a. 18500 b. 253021 c. None of the above, d. 118595
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.
What type of expenses are deducted as a part of gross profit? A)"Cost of goods sold" only B)"Selling, general and administrative" only C)"Cost of goods sold" and "Selling, general and administrative expense" D)"Cost of goods sold", "Selling, general and administrative expense" and E)"Interest expense"
First step - you need to understand each individual components of the income statement (also called a Profit & Loss Statement or P&L Statement): Sales (Revenue) The sales figure represents the amount of revenue generated by the business. It is calculated as the total of the number of units sold multiplied by the selling price per unit. The amount recorded here is the total sales, minus any product returns or sales discounts. Cost of Goods Sold This number represents the costs directly associated with making or acquiring your products. Costs include materials purchased from outside suppliers used in the manufacture of your product, as well as any internal expenses directly expended in the manufacturing process. In a service business where you, as the owner, are the only expense in supplying the service, and you do not pay yourself a salary beyond the company profits, your service expense may be zero. However, in a service business where you pay yourself a salary or have…
The following are several figures reported for Poyer and Sutter as of December 31, 2024: Sutter $ 280,000 760,000 Items Inventory Sales Investment income Cost of goods sold Operating expenses Poyer $ 480,000 960,000 480,000 220,000 380,000 290,000 Poyer acquired 90 percent of Sutter in January 2023. In allocating the newly acquired subsidiary's fair value at the acquisition date, Poyer noted that Sutter had developed a unpatented technology worth $74,000 that was unrecorded on its accounting records and had a five-year remaining life. Any-temaining excess fair value over Sutter's book value was attributed to an indefinite-lived trademark. During 2024, Sutter sells inventory costing $128,000 to Poyer for $176,000. Of this amount, 15 percent remains unsold in Poyer's warehouse at year-end. Required: Determine balances for the following items that would appear on Poyer's consolidated financial statements for 2024: Note: Input all amounts as positive values.
QUESTION 22 Which of the following is an incorrect statement? Revenue - Operating Income = Gross Margin Revenue = Price * Qty sold or TR = P*Q EAT = EBT - Taxes Income - Expenses = Operating Income Revenue - CGS = Gross Profit