The following amounts have been extracted from the accounts of Tech Store at its year-end, June 30, 20x5: Item Sales Amount $120,000 Cost of Goods Sold $78,000 Inventory $25,000 Accounts Receivable $15,000 Accounts Payable $12,000 The gross profit that Tech Store would report is: a. $120,000 b. $42,000 c. $25,000 d. $30,000

The following amounts have been extracted from the accounts of Tech Store at its year-end, June 30, 20x5: Item Sales Amount $120,000 Cost of Goods Sold $78,000 Inventory $25,000 Accounts Receivable $15,000 Accounts Payable $12,000 The gross profit that Tech Store would report is: a. $120,000 b. $42,000 c. $25,000 d. $30,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...

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The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
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Shaquille Corporation began the current year with inventory of 50,000. During the year, its purchases totaled 110,000. Shaquille paid freight charges of 8,500 for those purchases. At the end of the year, Shaquille had inventory of 47,800. Prepare a schedule to determine Shaquille's cost of goods sold for the current year.
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The following amounts have been extracted from the accounts of Sell-It at its year-end, December 31, 20x9: Sales $50,000 Cost of Goods Sold $35,000 Inventory Account Payable $10,000 $8,000 The gross profit that Sell-it would report is: a. $40,000 b. None of the other alternatives are correct c. $7,000 d. $15,000 e. $50,000
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