1.Financial information is presented below: Operating Expenses $ 90,000 Sales Returns and Allowances 25,000 Other Revenues and Gains 9,000 Sales Discounts 15,000 Other Expenses and Loss 4,000 Sales Revenue 470,000 Cost of Goods Sold 232,400 Required: Calculate the following: A. Net Sales B. Gross Profit and the Gross Profit Rate/Ratio (take it out to 1 decimal place) C. Income from Operations D. Net Income or Net Loss (label – it cannot be both) E. Profit Ratio (take it out to 1 decimal place)

1.Financial information is presented below: Operating Expenses $ 90,000 Sales Returns and Allowances 25,000 Other Revenues and Gains 9,000 Sales Discounts 15,000 Other Expenses and Loss 4,000 Sales Revenue 470,000 Cost of Goods Sold 232,400 Required: Calculate the following: A. Net Sales B. Gross Profit and the Gross Profit Rate/Ratio (take it out to 1 decimal place) C. Income from Operations D. Net Income or Net Loss (label – it cannot be both) E. Profit Ratio (take it out to 1 decimal place)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 19Q: The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and...

See similar textbooks

Similar questions

The following is select account information for August Sundries. Sales: $850,360; Sales Returns and Allowances: $148,550; COGS: $300,840; Operating Expenses: $45,770; Sales Discounts: $231,820. If August Sundries uses a multi-step income statement format, what is their gross margin?
The following information is available for Cooke Company for the current year: The gross margin is 40% of net sales. What is the cost of goods available for sale? a. 5840,000 b. 960,000 c. 1,200,000 d. 1,220,000
The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and Allowances: $34,890; COGS: $120,470; Sales Discounts: $44,760. Given this information, what is the Gross Profit Margin Ratio for Sunrise Motors? (Round to the nearest whole percentage.)
FINANCIAL RATIOS Use the work sheet and financial statements prepared in Problem 15-8A. All sales are credit sales. The Accounts Receivable balance on January 1,20--, was 3,800. REQUIRED Prepare the following financial ratios: (a) Working capital (b) Current ratio (c) Quick ratio (d) Return on owners equity (e) Accounts receivable turnover and average number of days required to collect receivables (f) Inventory turnover and average number of days required to sell inventory
Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of goods sold 660.0 Gross profit 135.0 Selling expenses 73.5 EBITDA 61.5 Depreciation expenses 12.0 Earnings before interest and taxes (EBIT) 49.5 Interest expenses 4.5 Earnings before taxes (EBT) 45.0 Taxes (40%) 18.0 Net income 27.0 a. Calculate the ratios you think would be useful in this analysis. b. Construct a DuPont equation, and compare the companys ratios to the industry average ratios. c. Do the balance-sheet accounts or the income statement figures seem to be primarily responsible for the low profits? d. Which specific accounts seem to be most out of line relative to other firms in the industry? e. If the firm had a pronounced seasonal sales pattern or if it grew rapidly during the year, how might that affect the validity of your ratio analysis? How might you correct for such potential problems?
Sold goods for $650, credit terms net 30 days. Which journal would the company use to record this transaction? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journal
Financial information is presented below: Operating expenses 38,000 Sales returns and allowances 7,000 Sales discounts 8,000 Sales revenue 150,000 Cost of goods sold 91,000 What is the net income?
Given the following information, prepare an income statement for Jonas Brothers Cough Drops. Note: Input all your answers as positive values. Selling and administrative expense $ 301,000 Depreciation expense 198,000 Sales 2,050,000 Interest expense 128,000 Cost of goods sold 521,000 Taxes 167,000