Sales P 475,000 Sales Returns and Allowances Purchases 5,000 220,000 Purchase Returns and Allowance 3,000 Advertising Sales Salaries Commission Expense Miscellaneous Selling Expense ent Expense Dffice Supplies ight and Water nsurance Expense axes and Licenses terest Expense ad Debts Expense erchandise Inventory, Jan 1, 20X1 epreciation Expense- Furn. & Equip. erchandise Inventory, Dec. 31, 20X1 in the blanks. 10,000 30,000 15,000 3,000 15,000 20,000 2,000 1,000 5,000 4,000 20,000 57,000 10,000 60,000 Net Sales 5. Seling and Administrative Expenses
Q: sold 26. Sold merchandise for cash, $8,000 at 15% gross profit. 30. Received merchandise returned by…
A: Journal entry is an entry that is for recording the transactions which are financial in nature. If a…
Q: Beginning merchandise inventory $27,000 Ending merchandise inventory 22,000 Purchases 80,000…
A: Solution:- Preparation of cost of goods sold as follows under:-
Q: P 750,000 19. Sales revenue Freight in Beginning inventory 44,000 75,000 20,000 Purchases discounts…
A: Cost of goods available for sale means cost of goods which can be sold to consumers.
Q: 20. Lunch Co.'s records show the following information: Beginning inventory 60,000 Purchases 500,000…
A: Total cost of goods available for sale = Beginning inventory + net purchase + freight in Where, Net…
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A: >Journal entries are used to record transaction.>Purchase transaction is recorded byDebiting…
Q: 3.15 and 3.16
A: 3.15 Ascertain the missing terms: Alatorre Company Income statement Particulars…
Q: $32,000 5,700 Purchases discounts Merchandise inventory September 30 Sales $960 6,370 Purchases…
A: Net purchases refers to the net amount of purchases which is calculating as deducting returns,…
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A: Pass necessary journal entries in the books of Cushing Distributing Company.
Q: On May 10, ABC Company sold S35,000 of merchandise on credit, 3/10, n/30. On May 25, ABC received…
A: Solution: Journal Entry: Date Particulars Debit Credit May 10 Accounts Receivable 35,000…
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A: Note: Under FOB destination freight is the seller's expense but under FOB shipping point, freight is…
Q: Hope Inc. has the following information: Beginning inventory P 56,000 Purchases 148,000…
A: The question is based on the concept of Cost Accounting. Cost of sales = Beginning inventory +…
Q: Purchases $32,000 Purchases discounts $960 Merchandise inventory September 1 5,700 Merchandise…
A: Net sales = Sales - Sales returns and allowances = $63,000 - $910 = $62,090 Net purchases =…
Q: 11. Using the following information, what is the amount of merchandise available for sale? Purchases…
A: Merchandise available for sale can be calculated by adding up net purchase and transportation in…
Q: 10. Using the following information, what is the amount of net sales? P28,000 Purchases Merchandise…
A: Sales is the revenue generated from the day to day operations of the firm. The net sales is the…
Q: Question 4: Presented below is information related to ABC company as at 31/12/208 Cost Retail…
A: The question is based on the concept of Cost Accounting.
Q: Abdulla Co. purchased S2,600 of merchandise from Adel Co. on April 10 with terms 2/10, n/30. On…
A: The question is multiple choice question. Required Choose the Correct Option.
Q: Purchases S32,000 Purchases discounts $960 Merchandise inventory 5,700 Merchandise inventory…
A: Net purchases = Purchases - purchases return and allowance - purchases discount = 32,000…
Q: 19. Temple Co.'s records show the following information: Beginning inventory 60,000 500,000…
A: The cost of goods sold includes the cost of the goods that are sold during the period.
Q: end December 31, 20B. P200,000 280,000 Merchandise Inventory, end Sales 300,000 150,000 Purchases…
A: Formula: Net sales = Sales - Sales returns and allowances - Sales discount
Q: 3) A company purchased inventory as follows: 200 units at $6.50 300 units at $6.20 The average…
A: The average cost strategy allocates an expense to stock things dependent on the complete expense of…
Q: 19. Sales revenue P 750,000 Freight in Beginning inventory Purchases discounts 44,000 Sales returns…
A: Goods available for sale can be calculated by adding up net purchase and freight into the beginning…
Q: P8-3B (Purchases Recorded Gross and Net) Some of the transactions of Duder Company during March are…
A: Journal entry is a primary entry that records the financial transactions initially.
Q: /30. Cost of the merchandise sold was $600,000. The customer paid for the purchase on October 14.…
A: Hi student, Since there are multiple questions, we will answer only first question.
Q: Account Name Debit Credit Sales 750,000 Sales Returns and Allowances 15,000 Sales Discounts 10,000…
A: Lets understand the basics. Profit means a all the income less all the expense during the period.…
Q: Feb. 3 Purchased $2,700 of merchandise inventory on account under terms 3/10, n/EOM and FOB shipping…
A: The journal entries are prepared to keep the record of daily transactions of the business.
Q: Sold goods to G George, invoice detailed 60 items @ R80 exclusive per item) Mark up is 150%.…
A: Sales=Units sold×Selling Price Cost of sales=Sales(100%+markup %)
Q: 1. Home office bills its branch for merchandise shipments at 25% above cost. The following are some…
A: Goods in transit mean goods sent by the home office but not received by the branch. Ending inventory…
Q: A company purchased $4.600 worth of merchandise. Transportation costs were an additional $405. The…
A: Net Merchandize purchase = Merchandize purchased - Merchandize returned Net Merchandize purchase =…
Q: ales 230,000 Sales Discounts 7,000 Sales Returns 15,000 Inventory, beg. 22,000 Inventory, end.…
A: Solution: Cost of goods sold is the cost of beginning inventory plus purchases cost and reduced by…
Q: In each of the given separate cases, compute the Cost of Sales in good form: P 15,000 CASE 1:…
A: Case 1: Net purchases = Purchases - Purchase discount - Purchase return & allowances =…
Q: Beg Inv @ cost $11,160 Net Additional markups $600 Sales $94,056 Purchases @ retail $92,400…
A: Cost to retail ratio is the ratio of cost of goods available for sale to retail cost of goods…
Q: 2 Purchased $5,600 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated…
A: The journal entries are prepared to record day to day transactions of the business.
Q: 19. Sales revenue Freight in Beginning inventory Purchases discounts 44,000 75,000 20,000 44,000…
A: The cost of finished and ready-to-sell goods is the cost of raw materials and labor used to make…
Q: Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the…
A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…
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A: Given: To calculate the gross profit as, Cost for goods sold = Opening inventory + Purchases -…
Q: Cost Retail Inventory, 12/31/2021 500,000.00 725,000.00 Purchases 1,285,000.00 2,220,000.00 Purchase…
A: Cost ratio is the ratio which shows the retail price made up by cost. It is the ratio which is used…
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A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: A company purchased $10,000 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping…
A: Merchandise Inventory Costing: In case of FOB Shipping, the buyer pays the shipping charges The…
Q: Periodic Inventory System Company A $ 520,000 Company B Beginning inventory + Net Purchases 327,000…
A: Periodic inventory method: It is a inventory valuation method in which inventory is updated at the…
Q: Revenue Gross Sales $189,000 Less: Sales Returns and Allowances 11,600 177,400 Net Sales Cost of…
A: Vertical analysis is a technique of analyzing financial statements. In this analysis, every element…
Q: PROBLEM 1 The following were taken from the accounts of Delta Hardware, a small retail business:…
A: This question belongs to the final accounts. In which we have to extract net purchases, net sales,…
Q: Sales $120,700 Sales returns and allowances 810 Sales discounts 680 Merchandise inventory, January 1…
A: Solution: Gross profit is the profit achieved from selling the goods or service. Gross profit is…
Q: 20. Company sold inventory fo $300,000 terms 2/10, n/30. Cost of goods sold was $152,000, How much…
A: Cost of goods sold is the net amount which is incurred in the manufacturing of those goods which are…
Q: Feb 1. Analisa purchase merchandise with an invoice price of 280,000 and 3/10 , n/30 Feb 3. Analisa…
A: Under FOB Shopping terms, goods are meant to be under ownership of buyer when these are shipped by…
Q: Inventory, 12/31/2021 500,000.00 725,000.00 Purchases 1,285,000.00 2,220,000.00 Purchase returns…
A: The cost revenue ratio compares a company's expenses to its earnings and is a measure of efficiency.…
Q: Journalizing purchase and sales transactions—periodic inventory system Journalize the following…
A: Periodic inventory system: The method or system of recording the transactions related to inventory…
Q: Assume the perpetual inventory system is used unless stated otherwise. Round all numbers to the…
A:
Q: Dana Co. purchased S2,600 of merchandise from Mona Co. on April 10 with terms 2/10, n/30. On April…
A: Purchase of merchandise inventory will be debited to inventory account and any decrease in inventory…
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- 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?Return on assets The following data (in millions) were adapted from recent financial statements of Tootsie Roll Industries Inc. (TR): The percent a company adds to its cost of sales to determine selling price is called a markup. What is Tootsie Roll’s markup percent? Round to one decimal place.Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Days’ sale in receivable
- Sales transactions Using transactions listed in P4-2, indicate the effects of each transaction on the liquidity metric working capital and profitability metric gross profit percent. Indicate the gross profit percent for each sale (rounding to one decimal place) in parentheses next to the effect of the sale on the company’s ability to attain an overall gross profit percent of 30%.Please try to answer accurately and accordance with requirements.Thank you!The general ledger of Emerates Traders Ltd includes the following accounts as at 30 June 2018:$000Sales Revenue 8,280Dividend Received 126Interest Received 65Cost of Sales 1,105Selling and Distribution expenses 450Administration expenses 1,550Finance costs 16Valuation loss on trading investments (considered a material item) 250Income tax expense charged to profit and loss 1,500Expenses classified by nature include:Auditors Remuneration:Audit of accounts 20Information technology controls advice 5 25Depreciation expense:Buildings 120Plant and Equipment 225 345Additional InformationThe valuation loss on investments held for trading is not tax deductible.Task 4a. Complete a Statement of Comprehensive Income showing expenses classified byfunction on the face of the Income Statement together with notes to the incomestatement including the material item.- Note that Emerates Traders Ltd discloses material items on the…Financial statementsThe assets and liabilities of Global Travel Agency on December 31, 20Y5.and its revenue and expenses for the year are as follows: Accounts payableAccounts receivableCashCommon stockFees earnedLandMiscellaneous expense Rent expenseSuppliesSupplies expenseUtilities expenseWages expense $ 108,000539,000200,000575,000940,0001,500,000$ 19,50056,0006,00012,70034,80415,000 Common stock was $525,000 and retained earnings was $1,250,000 as ofJanuary 1. 20Y5. During the year, additional common stock of $50,000was issued for cash, and dividends of $90,000 were paid. Instructions1. Prepare an income statement for the year ended December 31.20Y5.2. Prepare a statement of stockholders' equity for the year ended December 31. 2015.3. Prepare a balance sheet as of December 31, 20Y5.4. What items appears on both the statement of stockholders'equity and the balance sheet?
- Question 1The following information was extracted from the financial statement of Barryfor the year ended 31 December 2020. RMSales 437,500Opening inventories 17,500Closing inventories 26,250Cost of sales 262,500Other income 3,750Expenses 61,250Current liabilities 47,250Trade receivables 39,375Bank 8,750Cash 31,500Required:(a) Show the formulae and compute the value of the following for Barry:(i) Purchases(ii) Gross profit(iii)Net ProfitThe comparative balance sheet of Whitman Co. at December 31, 20Y2 and 20Y1, is as follows:Dec. 31, 20Y2 Dec. 31, 20Y1AssetsCash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 918,000 $ 964,800Accounts receivable (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 828,900 761,940Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,268,460 1,162,980Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,340 35,100Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 315,900 479,700Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,462,500 900,900Accumulated depreciation—buildings . . . . . . . . . . . . . . . . . . . . . . . . . . .…Capital 1 January 2019 350 000Drawings 20 000Sales (70% on credit) 950 000Gross profit 250 000Total expenses 80 000Bank favourable 26 000Net profit 74 000Trade creditors 26 000Property, plant and equipment 350 000Fixed deposit 20 000Inventory 72 000Trade Debtors 80 000Mortgage Loan 100 000 Additional InformationThe opening balance of the inventory, debtors and creditors was R50 000, R60 000 and R30 000respectively. Assume a 365 day year. Calculate the following ratios and explain what each ratio means in relation to theindustry average given in brackets. Show your calculations as marks will be awardedfor these. Round off to 2 decimal places. Q.2.1.3 Average creditors settlement period (60 days). Assume purchases are equalto cost of sales and 60% of all purchases are on credit. Q.2.2 Discuss how the solvency ratio is calculated and what is measured by this ratio. Please help with the both questions mentioned
- Capital 1 January 2019 350 000Drawings 20 000Sales (70% on credit) 950 000Gross profit 250 000Total expenses 80 000Bank favourable 26 000Net profit 74 000Trade creditors 26 000Property, plant and equipment 350 000Fixed deposit 20 000Inventory 72 000Trade Debtors 80 000Mortgage Loan 100 000 Additional InformationThe opening balance of the inventory, debtors and creditors was R50 000, R60 000 and R30 000respectively. Assume a 365 day year. Calculate the following ratios and explain what each ratio means in relation to theindustry average given in brackets. Show your calculations as marks will be awardedfor these. Round off to 2 decimal places. Q.2.1.3 Average creditors settlement period (60 days). Assume purchases are equalto cost of sales and 60% of all purchases are on credit. Q.2.2 Discuss how the solvency ratio is calculated and what is measured by this ratio.QUESTION 1The following are extracts of the income statement and the statement of financial position forMorula Industries.STATEMENT OF INCOME FOR THE YEAR ENDED 31 DECEMBER 2019PulaSales 500,000Less Cost of sales:Opening inventory 120,000Purchases 415,000Cost of goods available for sale 535,000Closing inventory (115,000) (420,000)Gross profit 80,000Operating expenses (40,000)Net surplus for the year 40,000 STAMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2019PulaCurrent assetsInventory 115,000Receivables 133,000Bank overdraft 124,000Current LiabilitiesPayables 96,000Capital and reservesShare capital 70,000General reserve 110,000Retained profit 110,000Additional Information The receivables and payables opening balances were P50, 000 each. All sales and purchases were made on credit.Required:a. Calculate the:i. Average payment period. ii. Average age of inventory. iii. Average collection period. iv. Cash conversion cycle. b. Explain five strategies that can improve the cash conversion…The comparative balance sheet of Coulson, Inc. at December 31, 20Y2 and 20Y1, is asfollows:Dec. 31, 20Y2 Dec. 31, 20Y1AssetsCash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 300,600 $ 337,800Accounts receivable (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 704,400 609,600Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 918,600 865,800Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,600 26,400Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 990,000 1,386,000 Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,980,000 $ 990,000Accumulated depreciation—buildings . . . . . . . . . . . . . . . . . . . . . (397,200) (366,000)Equipment . . . . . . . . . . . . . . . . . . .…