For MASA Company, the following information is available for 2020 Sales revenue 100,000 Sales discounts 2,000 Cost of goods sold $60,000 Operating expenses 23,000 Income tax expense 6,000 In MASA's income statement for 2020, operating income: a- should be reported at $31,000 b- should be reported at $15,000 C- should be reported at $9,000 d- should be reported at $10,000

For MASA Company, the following information is available for 2020 Sales revenue 100,000 Sales discounts 2,000 Cost of goods sold $60,000 Operating expenses 23,000 Income tax expense 6,000 In MASA's income statement for 2020, operating income: a- should be reported at $31,000 b- should be reported at $15,000 C- should be reported at $9,000 d- should be reported at $10,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 24CE

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Comprehensive The following information for 2019 is available for Marino Company: 1. The beginning inventory is 100,000. 2. Purchases returns of 4,000 were made. 3. Purchases of 300,000 were made on terms of 2/10, n/30. Eighty percent of the discounts were taken. 4. At December 31, purchases of 20,000 were in transit, FOB destination, on terms of 2/10, n/30. 5. The company made sales of 640,000. The gross selling price per unit is twice the net cost of each unit sold. 6. Sales allowances of 6,000 were made. 7. The company uses the LIFO periodic method and the gross method for purchase discounts. Required: 1. Compute the cost of the ending inventory before the physical inventory is taken. 2. Compute the amount of the cost of goods sold that came from the purchases of the period and the amount that came from the beginning inventory.
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