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warehouse of Marlon Corporation c

warehouse of Marlon Corporation c

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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O SIM - ACP 323 x OSOLUTION Prx SOLUTION PX SOLUTON PA x f 2) Racebaok /pluginfile.php/1290957/mod resource/content/0/SIM-ACP-323 Week-8-9.pdf 28 / 33 100% Problem 10 On September 1, 2014, a fire broke out in the warehouse of Marlon Corporation destroying all inventories and majority of its accounts records. The following information were made available from salvaged records. All sales and purchases are made on account: Inventories, January 1 Accounts receivable, January 1 Accounts receivable, September 1 Accounts payable, January 1 Accounts payable, September 1 Collections from customers, Jan. 1 to Sept. 1 1,150,800 1,044,720 1,031,120 705,120 982,800 6,030,400 3,900,000 390,000 Payment to suppliers, Jan. 1 to Sept. 1 Goods out on consignment on Sept. 1 at cost Goods in transit at Sept. 1, purchase FOB shipping point, included in the Sept. 1 accounts payable I. The following information was also made available about the past years operations: 139,000 2011 5,008,000 1,502,400 2012 2013 Sales 5,640,000 1,466,400 5,440,000 1,849,600 Gross profit Required: 1. What is the average gross profit ratio based on its prior years' sale? 2. What is the company's total sales for period January 1 to September 1? 3. What is the company's total purchases from January 1 to September 1? 4. What is the company's estimated inventory on September 1?
Transcribed Image Text:O SIM - ACP 323 x OSOLUTION Prx SOLUTION PX SOLUTON PA x f 2) Racebaok /pluginfile.php/1290957/mod resource/content/0/SIM-ACP-323 Week-8-9.pdf 28 / 33 100% Problem 10 On September 1, 2014, a fire broke out in the warehouse of Marlon Corporation destroying all inventories and majority of its accounts records. The following information were made available from salvaged records. All sales and purchases are made on account: Inventories, January 1 Accounts receivable, January 1 Accounts receivable, September 1 Accounts payable, January 1 Accounts payable, September 1 Collections from customers, Jan. 1 to Sept. 1 1,150,800 1,044,720 1,031,120 705,120 982,800 6,030,400 3,900,000 390,000 Payment to suppliers, Jan. 1 to Sept. 1 Goods out on consignment on Sept. 1 at cost Goods in transit at Sept. 1, purchase FOB shipping point, included in the Sept. 1 accounts payable I. The following information was also made available about the past years operations: 139,000 2011 5,008,000 1,502,400 2012 2013 Sales 5,640,000 1,466,400 5,440,000 1,849,600 Gross profit Required: 1. What is the average gross profit ratio based on its prior years' sale? 2. What is the company's total sales for period January 1 to September 1? 3. What is the company's total purchases from January 1 to September 1? 4. What is the company's estimated inventory on September 1?
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