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Apply the COGS equation used on the bottom of page 6-3 of the VLN to the following data set to answer the question: The company had $20,000 in beginning inventory and during the year purchased $200,000 worth of inventory. Ending inventory at the end of the period was $10,000, what was the cost of goods sold for the year? ____

Apply the COGS equation used on the bottom of page 6-3 of the VLN to the following data set to answer the question: The company had $20,000 in beginning inventory and during the year purchased $200,000 worth of inventory. Ending inventory at the end of the period was $10,000, what was the cost of goods sold for the year? ____

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...
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Apply the COGS equation used on the bottom of page 6-3 of the VLN to the following data set to answer the question: The company had $20,000 in beginning inventory and during the year purchased $200,000 worth of inventory. Ending inventory at the end of the period was $10,000, what was the cost of goods sold for the year? ____
Practice At the beginning of 20C, Bay Inc. reports Inventory of $6,000. During 20C, the company purchases additional Inventory for $29,000. At the end of 20C, the cost of Inventory remaining is $8,000. The company's sales revenue for the year was $45,000 and they had $500 of sales discounts. Calculate Net sales: Calculate Goods available for sale: Calculate cost of goods sold: Calculate gross profit: Gross Profit Ratio (AKA Gross Profit Margin): Gross Profit Gross Profit Ratio = x 100 = GP% Net Sales Vertical Analysis (Chapter 12) Common sized Income Statement (Net sales is the common denominator)· Practice Mills Corp. is a merchandising company that uses the periodic inventory system. Selected account balances are listed below: Sales $1,035,0 00 Sales returns 20,000 15,000 W|w\Sales discounts Purchases 470,000 25,000 Inventory (beginning) Inventory (ending) Operating Expenses 30,000 248,000 1,000 Interest revenue Effective Income Tax Rate 30% Based on the above determine COGS: Goods available for sale Chapter 6 Page 6-3
Transcribed Image Text:Practice At the beginning of 20C, Bay Inc. reports Inventory of $6,000. During 20C, the company purchases additional Inventory for $29,000. At the end of 20C, the cost of Inventory remaining is $8,000. The company's sales revenue for the year was $45,000 and they had $500 of sales discounts. Calculate Net sales: Calculate Goods available for sale: Calculate cost of goods sold: Calculate gross profit: Gross Profit Ratio (AKA Gross Profit Margin): Gross Profit Gross Profit Ratio = x 100 = GP% Net Sales Vertical Analysis (Chapter 12) Common sized Income Statement (Net sales is the common denominator)· Practice Mills Corp. is a merchandising company that uses the periodic inventory system. Selected account balances are listed below: Sales $1,035,0 00 Sales returns 20,000 15,000 W|w\Sales discounts Purchases 470,000 25,000 Inventory (beginning) Inventory (ending) Operating Expenses 30,000 248,000 1,000 Interest revenue Effective Income Tax Rate 30% Based on the above determine COGS: Goods available for sale Chapter 6 Page 6-3
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