Question
In: Accounting
As the accountant of Fun Slide Co., you have been asked to calculate Net sales Cost...
As the accountant of Fun Slide Co., you have been asked to calculate
- Net sales
- Cost of merchandise sold
- Gross profit
- Net income
from the following:
- gross sales, $45,000
- sales returns, $2000
- beginning inventory, $5,000
- net purchases, $8,000
- ending inventory, $2,000
- operating expenses, $9,200
Solutions
Expert Solution
1. CALCULATED NET SALES :-
NET SALES = GROSS SALES - SALES RETURN
= $45,000 - $2,000
= $ 43,000
2. COST OF MARCHANDISE SOLD :-
COST OF MARCHANDISE SOLD = BEGINNING INVENTORY + NET PURCHASE - ENDING INVENTORY
= $ 5000+ $8,000- $2,000
= $ 11,000
3. GROSS PROFIT :-
GROSS PROFIT = NET SALES - COST OF MARCHANDISE SOLD
= $43,000 - $11,000
= $ 32,000
4. NET INCOME :-
NET INCOME = GROSS PROFIT - OPERATING EXPENSES
= $ 32,000-$ 9,200
= $ 22,800
| NET SALES | $ 43,000 |
| COST OF MARCHANDISE SOLD | $ 11,000 |
| GROSS PROFIT | $ 32,000 |
| NET INCOME | $ 22,800 |
ekkarill92 answered 1 year agoRelated Solutions
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