Question

In: Accounting

In calculating the current ratio which item would not be included. a. equipment ...

In calculating the current ratio which item would not be

included.

a. equipment

b. accounts payable

c. accounts receivable

d. short term investments

10. Bonds payable in two years would be classified as.

a. noncurrent assets

b. equity

c. current liability

d. noncurrent liability

III. Using the following information to answer items 11 thru 15.

Sales 500,000, Sales Returns 10,000,

Sales Discounts 10,000, Purchases 130,000

Purchase returns 10,000, Purchase discounts 20,000

Freight In 20,000, Selling expenses 50,000

General expenses 170,000, inventory-beg 27,000

Inventory-end 20,000

11. Net sales for the period are

a. $500,000

b. $480,000

c. $490,000

d. $520,000

-3-

12. Net purchases for the period are

a. $100,000

b. $120,000

c. $150,000

d. $160,000

13. Cost of goods sold for the period is

a. $147,000

b. $107,000

c. $127,000

d. none of the above

14. Gross Margin for the period is

a. $353,000

b. $333,000

c. $303,000

d. none of the above

15. Net income for the period is

a. $113,000

b. $133,000

c. $126,000

d. none of the above

-4-

Solutions

Expert Solution

ekkarill92 answered 1 year ago

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