Selling Expenses Interest Revenue Net Sales Revenue Cost of Goods Sold Administrative Expenses
Q: On the income statement of a merchandising company, interest income and interest expense are…
A: Merchandising company generally uses the same 4 part of financial statements : 1. Income Statement…
Q: Which type of company would report merchandise inventory as a line item on their balance sheet?…
A: Inventory: It can be defined as all the goods, items, materials, and merchandise that are held by a…
Q: which of the following would be considered in the calculation of gross profit? Sales and returns…
A: Gross Profit is the operating profit calculated by deducting the cost of goods sold from the revenue…
Q: Determine the total selling and administrative expenses
A: Formula: Total selling and administrative expense = Beginning selling and administrative expense +…
Q: How to calculate total selling expense
A: Selling expenses are the expenses incurred to sell a product to the customer.
Q: Explain the accounting for sales with right of return.
A: Definition: Accounting for sales with a right of return: Accounting for sales with the right of…
Q: Calculation of Net income and Cost of Goods Sold
A: The cost of goods manufactured (COGM) is the sum of the cost of direct labor used, the cost of…
Q: When does the cost of inventory become an expense?a. When cash is collected from the customerb. When…
A: Answer: b. When inventory is delivered to a customer
Q: Which of the following is reported as part of the operating expenses? Cost of sales…
A: The question is based on the concept of Business Accounting.
Q: On credit side of Profit and Loss Account we record: Direct Expenses Direct Income Indirect…
A: What is meant by a Profit and loss account? The statement shows the net profit or loss at the end of…
Q: his account is used to recognize the cost of an inventory that is sold as expens
A: Solution: When inventory is sold, then this cost should be transferred to Cost of goods sold…
Q: Operating expenses are comprised of the following: O General and Administrative Expense, Cost of…
A: Operating Expenses (OpEx) are those expenses which are directly associated with the day to day…
Q: Cost of goods available for sale is calculated by adding: A beginning inventory to net purchases and…
A: The cost of products available for sale is the cost of raw materials and labor used to make goods…
Q: The major revenue of a merchandiser is while the major expense(s) is(are) sales revenue, cost of…
A: Sales - Sales is Revenue for the company. It can earn by the company through cash or credit. Cost of…
Q: The cost of goods available for sale is allocated between * O beginning inventory and ending…
A: Gross profit = Sales - Cost of goods sold Sales = Cost of goods sold + Gross profit Cost of goods…
Q: Which of the following would calculate Net Income or Net Loss? O Gross Profit - Operating Expenses O…
A: Net income is calculated as the Sales-Cost of goods sold-Operating expense Where Gross profit is…
Q: Which accounting method (net cost or gross invoice price) provides the most useful information?
A: The net cost of any product is the amount of the invoice plus any taxes and extra fees that are…
Q: Dividing cost of goods sold by the average of merchandise inventory is the calculation for the…
A: The ratio indicates how fast the company selling its inventory. a high inventory turnover indicates…
Q: Weighted Average Cost (Periodic) Units Cost Goods Available for Sale Cost of Goods Sold Ending…
A: Inventory Valuation: It is an asset held for sale in the ordinary course of business. It is used in…
Q: Which account does a merchandiser use that a service company does not use? Cost of Goods Sold…
A:
Q: s the cost of goods sold from the income statement part include the cost of goods in inventory?
A: Cost of Goods Sold=Beginning Inventory+Purchases for the period-Ending Inventory
Q: Cost of Gross Sales Goods Sold Profit (Loss) Net Ending Beg Inventory Purchases Inventory Net Sales…
A: Formulas: Gross profit = Net sales - Cost of goods sold
Q: Goods or products a company owns and expects to sell to its customers A) Sales B Merchandise…
A: Answer - Merchandise Inventory - Merchandise inventory means the value of goods in stock, it can…
Q: The sum of ending inventory and cost of goods sold isa. net purchases.b. beginning inventory.c. cost…
A: Cost of goods sold is the cost price of the goods at which the goods are sold.
Q: . In addition to the purchase price, what additional expenditures does the companyinclude in the…
A:
Q: Define the following: Cost of goods sold
A: Since we are allowed to answer only three sub-parts of the question, I am answering only three for…
Q: What is the amount of sales under cash basis? What is the amount of purchases under cash basis?…
A: Solution Note : as per the Q&A guideline we are required to answer the first three subparts only…
Q: . Which of the following figures from a firm’s financial statements should be used as itsflow rate…
A: In the above question we have asked about inventory turns which is as below.
Q: Compute the receivable turnover ratio Also compute the inventory turnover ratio
A: A quantitative method that provides information about the company including its liquidity,…
Q: Calculate Gross profit ratio
A: Gross profit ratio = Gross profit/ Sales *100
Q: 1. Which one of the following types of costs is most likely to be included in determining the cost…
A: Answer to the first question: The type of cost that is directly related to the cost of inventory is…
Q: Merchandise inventory is O Reported on the balance sheet under plant and equipment O Products a…
A: Income statement and balance sheet are the financial statements of a company, prepared at the end of…
Q: Sales taxes collected by a retailer are reported as revenues. current liabilities. expenses.…
A: Introduction: A sales tax is a consumption tax imposed by the government on the selling of goods and…
Q: Which of the following expressions is incorrect? Gross profit – operating expenses = net…
A: Income statement: It can be defined as a financial statement that shows all the profits earned or…
Q: How is cost of goods sold classified in the financial statements?a. As a revenueb. As an expensec.…
A: Cost of goods sold is the cost of goods that are being sold in that particular period. It is…
Q: When an entity prepares financial statements in a current cost basis, how is the cost of goods sold…
A: Financial statement: It is the representation of financial data of the company. It shows the…
Q: andise Inventory becomes part of Cost of Goods Sold when an entity sells the inventory pays the…
A: Solution: Merchandise Inventory becomes part of Cost of Goods Sold when an entity "sells the…
Q: Where are selling and administrative expenses found on the multiple-step income statement? Da. after…
A: Selling and administrative expenses refers to every expense that is indirectly related to the…
Q: cost of merchandise sold? S What is the term applied to the eXcess of net revenue from sales over…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
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- The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000A company reported the following data for the year ending 2018: Description Amount Sales Sales discount Sales returns and allowances $400,000 $16,000 $13,000 $117,000 $153,000 |Cost of goods sold |Operating expense Income tax expense $23,750 Compute the amount of gross profit to be reported on the income statement. a. $101,000 b. $117,000 c. $254,000 d. $124,750 Answer O O O ODetermining Gross Profit During the current year, merchandise is sold for $11,750,000. The cost of the goods sold is $7,050,000. a. What is the amount of the gross profit?$ b. Compute the gross profit percentage (gross profit divided by sales). Round to the nearest whole number. % c. When will the income statement report net income?
- Income Statement For the Year Ending December 31, 20X1Sales (on credit)$ 2,106,000Cost of goods sold1,371,000Gross profit$ 735,000Selling and administrative expenses561,000*Note asteriskOperating profit (EBIT)S 174,000Interest expense33,900Earnings before taxes (EBT)S 140,100Taxes83,300Earnings after taxes (EAT)S 56,800*Selling and administrative expenses Note asteriskIncludes $42,700 in lease payments. Using the above financial statements for the Jackson Corporation, calculate the following ratios. Profitability ratios. Note: Do not round intermediate calculations. Input your answers as a percent rounded to 2 decimal places.A company reports the following amounts at the end of the year: Sales revenue Cost of goods sold Net income $ 310,000 210,000 53,000 Compute the company's gross profit ratio. (Round your final answe Gross profit ratio %#31 For the year ended December 31, 2020, LIVERPOOL Company reported the following amounts: Net income is 7.50% of net sales. On the other hand, gross profit is 40% of the net sales. Determine the amount of operating expenses. Determine the amount of COGS (Cost of Goods Sold). Determine the amount of goods available for sale. Determine the amount of Inventory, 12/31/20
- 1. The Income statement for STEM Store for the year ended 31 December 2021 with the following data: 192,000 29,700 31,200 13,400 107,000 28,100 Gross Sales P Beginning Inventory Ending Inventory Sales Returns and allowances Net purchases Operating Expenses Determine the STEM Store's: a) Net Sales b) Cost of Goods Sold c) Gross Profit from Sales d) Net IncomeDetermining Gross Profit During the current year, merchandise is sold for $45,870,000. The cost of the merchandise sold is $33,026,400. a. What is the amount of the gross profit? 12,843,600 b. Compute the gross profit percentage (gross profit divided by sales). % c. When will the income statement necessarily report a net income?The following income statement appears in the financial report of MERCADO Company for the year ending December 31, 2020: MERCADO Company Income Statement For the year ending December 31. 2020 Sales 72,485,000.00 Cost of goods sold Gross profit 39.866,750.00 32.618.250.00 Less: Operating expenses: Variable selling expenses: Salesmen's commissions 3,624,250.00 Communication expenses 1,812.125.00 Advertising and promotion 635.350.00 Representation expenses 215.385.00 Gas and oil - salesmen 1,285.000.00 Repairs and maintenance 1,150.000.00 3.722.110.00 Fixed selling expenses Salaries and wages 4,225,000.00 Franchises and royalties 524,150.00 Office supplies and materials 555.000.00 Depreciation 963 300.00 6.267,450.00 14.989,560.00 Fixed administrative expenses Salaries and wages 6.324,650.00 Employee benefits 316,490.00 Communications expenses 335,125.00 Office supplies and materials 275,150.00 Depreciation 325,500.00 104 250.00 7.681,165.00 9.947.525.00 Miscellaneous expenses Operating…
- Presented below is information for Ayayai Company for the month of March 2020. Cost of goods sold $212,100 Rent expense $30,100 Freight-out 6,010 Sales discounts 7,010 Insurance expense 5,100 Sales returns and allowances 12,010 Salaries and wages expense 55,100 Sales revenue 385,000 Compute the gross profit rate. (Round answer to 2 decimal places, e.g. 25.20%.) Gross profit rate Enter the gross profit rate in percentages %Determining Gross Profit During the current year, merchandise is sold for $8,100,000. The cost of the goods sold is $4,698,000. a. What is the amount of the gross profit?$ b. Compute the gross profit percentage (gross profit divided by sales). %The following are the financial statement JNC Ltd. for the year ended 31 March 2020: JNC Ltd. Income statement For the year ended 31 March 2020 $”M” Revenue 1276.50 Cost of sales (907.00) 369.50 Distribution costs (62.50) Administrative expenses (132.00) 175.00 Interest received 12.50 Interest paid (37.50) 150.00 Tax (70.00) Profit after tax 80.00 JNC Ltd. Statement of financial position as at 31 March 2020 2019 $”M” $”M” ASSETS: Non- current assets: Property, plant and equipment 190 152.5 Intangible assets 125 100 Investments 12.5 Current assets: Inventories 75 51 Receivables 195 157.5 Short-term investment 25 Cash in hand 1 0.5 Total assets 611 474 Equity and liabilities: Equity: Share capital (10 million ordinary shares of $ 10 per value) 100 75 Share premium 80 75 Revolution reserve 50 45.5 Retained earnings 130 90 Non-current liabilities: Loan 85 25…