The following information were taken from the books of Fishman Island Sport Store that sells different kinds of swimming gears and accessories: Sales Returns & Allowances |Freight In Commission Expense Purchase Returns & Allowances Merchandise Inventory, Dec. 31 Freight Out Merchandise Inventory, Jan. 1 HDMF Premium Expense SSS Premium Expense PHIC Premium Expense 4,000 Purchase Discount 8,000 Communication Expense 30,000 Sales 7,500 Purchases 95,000 Sales Discount 11,000 Rent Expense – Showroom 78,500 Sales Salaries Expense 1,826 | Taxes & Licenses 3,088 | Depreciation Expense – Office Furniture 1,200 | Interest Expense 6,000 45,000 540,000 112,000 25,000 20,000 91,300 10,170 16,500 3,500 Requirement: 1. Compute for Cost of Sales, Selling Expenses and Administrative Expenses. 2. Present the Income Statement using Function of Expense method.

Q: What does inventories /sales ratio mean?

A: An accounting metric used to measure liquidity, solvency, efficiency etc. of a business entity is…

Q: How do I use FIFO and calculate the Cost of Goods and inventory ?

A: FIFO Method: FIFO method also referred to as First-In-First-Out method is an inventory management…

Q: How you get the gross profit and cost of goods sold

A: Gross Profit -Gross Profit is a Profit earned by the entity from the customer. It is the profit…

Q: I thought for an Income Statement you only need serivce revenue, subract expenses and then you get a…

A: Income statement - It is a type of financial statement which displays the Revenue and Expenses…

Q: Pit Corporation owns 90% of Stop Company's outstanding common stock. On 07/01/20, Pit sold inventory…

A: Journal entry: A journal entry is used to record day-to-day transactions of the business by debiting…

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: How is Income from Operations determined? A) Net Sales - Selling Expenses - Administrative Expenses…

A: Net sales - Cost of goods sold = Gross profit

Q: Define cost of goods sold. How is it computed? What two financial reports does it impact and how?

A: Cost of goods sold or COGS is the direct cost of the products sold/manufactured by the entity. It…

Q: Which inventory costing method produces a more accurate income statement – FIFO or LIFO? ___________…

A: Lets understand the basics. There are various inventory methods are followed for calculating ending…

Q: How did they get the income summary?

A: Lets understand the basics. Income summary is summary which reflects the all the revenue and expense…

Q: How to calculate total selling expense

A: Selling expenses are the expenses incurred to sell a product to the customer.

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: compute the gross profit percentage

A: Gross profit: It implies to the excess of company's net sales over the cost incurred on goods sold…

Q: Which numbers do I need to use to compute the sales

A: Sales is the dollar value received by selling any number of units.

Q: determine the cost of merchandise sold.

A: The cost of merchandise sold is the cost of goods that have been sold by a wholesaler or retailer.…

Q: How do you determine net income applying the accrual accounting model?

A: Accrual Accounting Model:This method is a widely used basis of accounting that suggests the timing…

Q: Gross profit is calculated as the difference between net sales revenue and​ ________.         A.…

A: Revenue- Revenue refers to the quantity of cash that a corporation actually received during the…

Q: purchase Returns & Allowances appears where on an Income Statement?

A: The income statement is the financial statement of the business which shows about the profitability…

Q: In accounting what is meant by the term 'purchases'? Select one: OA. All good purchased and paid…

A: INTRODUCTION: The recorded transaction must be gathered, categorized, and summarised. Accounting is…

Q: How do you calculate gross profit as a percentage of sales?

A: Gross profit as a percentage of sales, also known as gross profit margin, is a financial metric used…

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: The price a business pays for goods it purchases to sell is called: A. markup B. purchase price C.…

A: Any item that is displayed for sale and intended to be sold to customers in exchange for a profit is…

Q: How should you compute the number that appears as "cost of good sold" in a common-size income…

A: Lets understand the basics.There are two type of analysis are made.(1) Verticle analysis(2)…