a company has the following account balances sales 250,000 sales discount 1,500 sales returns and allowances 2,300 sales salaries expenses 56,000 store supplies expenses 15,000 advertising expense 8,000 cost of goods sold 125,000 question: what is the geross profit that would appear on a multiple-step income statement

Q: For Mortenson Company, the following informationis available: Cost of goods sold £240,000 Sales…

A: Net Sales = Gross Sales - Sales Discount Net Sales = $400,000 - $8,000 Net Sales = $392,000

Q: QI: Use the following multi-step income statement of Ancho Company to prepare a single-step version.…

A: Income statement can be prepared by using two method which are, (1) Single step income statement…

Q: Kenzy Co. had the following account balances: Sales revenue 24 120,000 Cost of goods sold 60,000…

A: The gross profit is calculated as difference between sales and cost of goods sold.

Q: lex Enterprises reports the following information on its year-end income statement: Net sales…

A: solution : given Net sales $300,000 Operating expenses $60,000 Cost of goods sold…

Q: 1. Quartz Corporation had the following account balances: Sales, $875,000; Sales Returns and…

A: Introduction: Net sales: Net sales value to be shown in income statement. It tells the exact sales…

Q: A company reports the following sales-related information. Compute and prepare the net sales portion…

A:

Q: Save-the-Earth Co. reports the following income statement accounts for the year ended December 31.…

A: Profit and Loss Statement is the main financial statement of the company which is prepared to report…

Q: Income Statement and Accounts for Merchandiser For the fiscal year, sales were $6,580,000 and the…

A: a Compute the gross profit:     Sales $6,580,000   Less: Cost of Goods sold $3,816,000   Gross…

Q: A company reports the following sales-related information. Sales, gross Sales discounts $ 260,000…

A: The question is related to Multi-Step Income Statement (Partial).  A multi-step income statement is…

Q: financial information is presented here for queen company. Net sales- 80,000 cost of goods sold-…

A: Formula: Gross profit = Net sales - Cost of goods sold

Q: Insurance expense 18,200 Administrative Salaries expense 16,300 Sales revenue 160,000 Income…

A: Total administrative expenses are those which are not directly concerned with the product but also…

Q: Prepare a traditional format income statement for the next quarter.         Milden Company…

A: Income Statement shows all incomes and expenses in the business and at the end it shows net income…

Q: Conor Company provided the following data for the current year:             Sales…

A: solution concept cash basis of accounting id different from accrual basis of accounting under cash…

Q: The company's gross profit based on the following is sales $48,000, sales returns and allowances…

A: The multi-step income statement demonstrates critical linkages that aid in determining how…

Q: Conor Company provided the following data for the current year:             Sales…

A: solution under cash method we record the transaction as and when the payments are made let us first…

Q: Financial information is presented below: Operating Expenses $ 90,000 Sales Returns and 26,000…

A: The gross profit margin is calculated as gross profit divided by net sales revenue. Gross profit =…

Q: The following information appeared in a company’s income statement: Sales . . . . . . . . . . . . .…

A: Income statement is the statement which shows the performance of a firm during the accounting…

Q: A company reported the following balances in some selected accounts: Purchases $ 18,000, Cost of…

A: Net Sales = Sales – Sales Discount Net Sales = 35,000 – 1,500 = $33,500

Q: The following information of ABC Merchandise Business for the year ended 31st December 2020 Account…

A: Net sales = Sales - Sales Discounts - Sales returns

Q: Consider the following information about operations of a business for the period ending December 31,…

A: Gross profit is the amount of profit that is arrived at by deducting cost of goods sold from Net…

Q: Presented below is information for Obley Company for the month of March 2010. Cost of goods sold…

A: Income statement gives the details of the revenues and expenses of the current year.

Q: From the following accounts, prepare a multi-step income statement for Karlman Distributors for the…

A: Gross Profit = Sales - cost of goods sold Income from Operations = Gross Profit - Operating Expenses

Q: Presented below is information for Carla Vista Co. for the month of January 2017. Cost of goods…

A: Prepare an income statement using the multistep format.

Q: A company reports the following sales-related information. Sales, gross $ 290,000 Sales returns and…

A: Net sales is arrived after adjusting gross sales with sales allowance and discount

Q: The following accounts of Rex Company are as follows: Sales P480,000; Cost of goods sold P300,000;…

A: Net Income is the measure of profitability of the business. This is calculated by deducting all type…

Q: Newark Company has provided the following information: · Cash sales, $450,000 · Credit sales,…

A: Cost of goods sold= Net sales- Gross profit Net sales = Cash sales + Credit sales - Sales Discount -…

Q: sing the financial information presented below:             Operating Expenses  $ 55,000…

A: Answer 1) Formula: Gross Profit = Net Sales – Cost of Goods Sold Gross Profit = (Sales – Sales…

Q: For Mortenson Company, the following information is available: Cost of goods sold$  60,000 Income…

A: Formula: Gross profit = Sales revenue - Cost of goods sold Deduction of cost of goods sold from…

Q: Jackson, Inc. has the following information available: Cost of goods sold $148,500 Dividend revenue…

A: Multiple step income statement -  Multiple step income shows the net income earned by the company by…

Q: XYZ company provided the following information: Sales $30,000 3,000 Accounts payable Selling…

A: Gross profit is the income earned by a company after covering the cost of goods sold from the sales…

Q: A company had sales of $40,000, sales discounts of $800, sales returns of $1,600, and commissions…

A: Net sales = Sales - sales discounts - sales returns

Q: The following information is taken from the accounting recordes of LouLou's Cupcakes Limited for the…

A: The net income refers to the amount remaining out of revenues earned after incurring the expenses…

Q: Using the financial information is presented below:             Operating Expenses  $ 55,000…

A: Solution: Net sales = Sales - Sales returns and allowances - Sales discount = $160,000 - $13,000 -…

Q: Sales, gross $ 275,000   Sales returns and allowances $ 18,000   Sales discounts   5,500   Sales…

A: Net Sales = Gross sales - Sales returns and allowances - Sales discounts

Q: Perform a vertical analysis for the entry "Gross Sales" on the portion of an income statement shown…

A: Vertical Analysis refers to the income statement analysis where all the line items present in the…

Q: Financial information is presented below: Operating expenses $ 42,000 Sales returns and allowances…

A: The income statement represents the net income or net loss that is calculated by deducting the…

Q: Quartz Corporation had the following account balances: Sales, $875,000; Sales Returns and…

A: Net sales can be calculated by deducting sales returns and allowances from the gross sales value.

Q: A company shows the following balances: $2,500,000 Sales Revenue Sales Returns and 450,000…

A: Gross profit is the amount of profit earned by an entity after spending on all the expenses to earn…

Q: he following accounts of Rex Company are as follows: Sales P480,000; Cost of goods sold P300,000;…

A: Solution: Gross margin is computed as Net sales minus cost of goods sold.

Q: Quartz Corporation had the following account balances: Sales, $875,000; Sales Returns and…

A: The sales is the sum of gross sales revenue after netting off any discounts, returns and allowances…

Q: The following accounts of Rex Company are as follows: Sales P480,000; Cost of goods sold P300,000;…

A: Solution:- Calculation of Net income as follows under:- Note:- Calculation of net sales =Sales -…

Q: From the following accounts, prepare a multi-step income statement for Karlman Distributors for the…

A: Introduction: Income statement: All revenues and expenses are recorded in income statement. It tells…

Q: sing the financial information is presented below:             Operating Expenses  $ 55,000…

A: Formula: Gross Profit = Net Sales – Cost of Goods Sold Gross Profit = (Sales – Sales returns and…

Q: The following accounts of Rex Company are as follows: Sales P480,000; Cost of goods sold P300,000;…

A: Interest income is not considered as operating revenue.

Q: Sales revenue   $104,000   $enter a dollar amount  Sales returns and allowances   enter a dollar…

A: Income statement is a part of financial statement which shows financial performance of the company…

Q: A company reports the following amounts at the end of the year:         Sales revenue $ 390,000…

A: Sales revenue $390,000 Less: Cost of goods sold 200,000 Gross profit $190,000

Q: Presented below are certain account balances of Paczki Products Co. Rent revenue $ 6,500…

A: Total Revenue is: Sales Revenue 390000 Less: Sales Discounts (7800)  Less: Sales Returns…

Q: Presented below is information for OB Company for the month of April 2019. Cost of goods sold…

A: Gross Profit Rate = (Gross profit / sales) x 100 (68,500/174500)×100=39%

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is