Question
In: Finance
A retailer has yearly sales of $650,000. Inventory on January 1 is $260,000 (at cost). During...
A retailer has yearly sales of $650,000. Inventory on January
1 is $260,000 (at cost). During the year, $500,000 of merchandise
(at cost) is purchased. The ending inventory is $265,000 (at cost).
Operating costs are $90,000.
a. Calculate the cost of goods sold
b. Calculate the net profit
Solutions
Expert Solution
A.Cost of goods sold= ( opening inventory+purchase -closing inventory)
=( 260000+500000-265000)
= $ 495,000
B. Net profit= [ Sales-( purchase+ opening inventory-closing inventory)-operating cost)
= [650000-(500000+260000-265000)-90,000]
=[ 650000-495000-90000]
= $ 65000
Or Net profit= [ Revenues- Cost of good sold- Operating expenses]
= [650000-495000-90000]
= $ 65000
jeff jeffy answered 1 year agoRelated Solutions
Question # 1: A retailer has yearly sales of $650,000. Inventory on January 1 is $250,000...
Question # 1: A retailer has yearly sales of $650,000. Inventory
on January 1 is $250,000 (at cost). During the year, $500,000 of
merchandise (at cost) is purchased. The ending inventory is
$275,000 (at cost). Operating costs are $90,000. a. Calculate the
cost of goods sold b. Calculate the net profit
Joe’s Dry Dock Co. purchased equipment on January 1, 2015, at a cost of $650,000. The...
Joe’s Dry Dock Co. purchased equipment on January 1, 2015, at a
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depreciation. At the beginning of 2020, Joe’s revised its total
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Required:
Prepare journal entries to record Joe's depreciation expense for
both 2019 and 2020.
During January, a company that uses a perpetual inventory system had beginning inventory, purchases, and sales...
During January, a company that uses a perpetual inventory system
had beginning inventory, purchases, and sales as follows :
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70
16
15
Sale
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25
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Required:
Prepare a schedule showing cost of goods sold and ending
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C.
Compute gross profit under for
a...
During January, a company that uses a perpetual inventory system had beginning inventory, purchases, and sales...
During January, a company that uses a perpetual inventory system
had beginning inventory, purchases, and sales as follows :
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Cost per unit
Begin Inventory
100
12
Jan 5
Sale
50
10
Purchase
70
16
15
Sale
25
25
Sale
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Required:
Prepare a schedule showing cost of goods sold and ending
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Prepare a schedule showing cost of goods sold and ending
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A retailer has a beginning monthly inventory valued at $60,000 at retail and $35,000 at cost....
A retailer has a beginning monthly inventory valued at $60,000
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A physical inventory at the end of the month shows merchandise
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$10,550 increase in the financing section
$10,550 decrease in the financing section
$19,000 increase in the investing activities section
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$
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The following pertain to the cost of H’s only inventory item: Inventory on hand, January 1 &
The following pertain to the cost of H’s only inventory
item:
Inventory on hand, January
1 295
units @ $50 per unit
Purchases, January
12 590
units @ $88 per unit
Purchases, January
20 450
units @ $91 per unit
Purchases, January
31 300
units @ $93 per unit
1,635
Sales, January
5 75
units @ $200 per unit
Sales, January
15 350
units @ $200 per unit
Sales, January
22 550
units @ $200 per unit
Sales, January
30 140
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x...
Let's Get Stoned, Inc. reported the following for 2020: Net Sales 650,000 Cost of goods...
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17,000
PREPARE STATEMENT OF COMPREHENSIVE INCOME :
A. ONE STEP FORMAT
B. TWO STEP FORMAT
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