4) The following data are for Montgomery Retail Outlet Stores. The account balances (in thousands) are for 2011. $ 24,000 Marketing and advertising costs Merchandise inventory, January 1, 2011 Shipping of merchandise to customers Building depreciation 45,000 2,000 4,200 Purchases 260,000 General and administrative costs 32,000 Merchandise inventory, December 31, 2011 Merchandise freight-in 52,000 10,000 11,000 Purchase returns and allowances Purchase discounts 9,000 Revenues 320,000 a. Compute (a) the cost of goods purchased and (b) the cost of goods sold. b. Prepare the income statement for 2011.

4) The following data are for Montgomery Retail Outlet Stores. The account balances (in thousands) are for 2011. $ 24,000 Marketing and advertising costs Merchandise inventory, January 1, 2011 Shipping of merchandise to customers Building depreciation 45,000 2,000 4,200 Purchases 260,000 General and administrative costs 32,000 Merchandise inventory, December 31, 2011 Merchandise freight-in 52,000 10,000 11,000 Purchase returns and allowances Purchase discounts 9,000 Revenues 320,000 a. Compute (a) the cost of goods purchased and (b) the cost of goods sold. b. Prepare the income statement for 2011.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter6: Cost Of Goods Sold And Inventory

Section: Chapter Questions

Problem 33BE

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Similar questions

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Last year, Nikkola Company had net sales of 2,299,500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average inventory. 2. Calculate the inventory turnover ratio. 3. Calculate the inventory turnover in days. 4. CONCEPTUAL CONNECTION Based on these ratios, does Nikkola appear to be performing well or poorly?
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