24 MONTH MYLAB (MAN)
7th Edition
ISBN: 9780136503521
Author: MILLER-NOBLES
Publisher: PEARSON
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Chapter 5, Problem 5.47BP
1.
To determine
To prepare: Single-step Income Statement
Introduction: The financial statements of a company include the balance sheet, income statement, and cash flow statement. All these statements help the internal and external users of financial statements help in analyzing and concluding the financial position of the respective company.
2.
To determine
To prepare: To prepare multi-step income statement
Introduction: In accounting,
3.
To determine
To prepare: Calculation of Gross profit percentage
Introduction: Gross profit is the profit a company makes after deducting the costs associated with making and selling its products, or the costs associated with providing its services. Gross profit will appear on a company's income statement and can be calculated by subtracting the cost of goods sold (COGS) from revenue (sales).
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Additional Activities
Now that you have learned how to forecast revenues and cost of the
business, investigate how these concepts are being applied by existing businesses
in your community. Using the table below, fill in the necessary information based on
your investigation.
Daily Revenue and Cost
Name of Business:
Projected
Projected
Volume
Revenue
Projected
Cost
Mark-up
Selling
(D)
(E)
Costs of
per Unit
Price
Average
Merchandisel
Purchases
(A)
(B)
(C)
No. of
Products
(Daily)
(Daily)
Items Sold
(Daily)
(B)= (A x
C =A +
E = C x D
K = (A x D)
.50)
B
Ex. Bag
150.00
75.00
225.00
10
2250
1500
yd belugm
COLLEC
tol elubom r borlain even uoy Jar wo
Aan pese
The following information is taken from the financial statements of Down Home Deli for
the last three years. The owner, John Walton is quite pleased to see that his sales are
growing steadily.
2018
2017
2016
Sales
$ 61,500
$ 50,400
$ 42,000
Cost of goods sold
27,670
21,170
16,800
Operating income
7,530
6,050
4,620
Net income
3,075
4,030
2,940
Instructions:
(a) Calculate gross profit margin, profit margin, and profit margin using operating
income.
(b) Comment on whether the Deli is, in fact, doing better over the three years as John
believes.
You are the vice president of finance of Kingbird Corporation, a retail company that prepared two different schedules of gross margin for the first quarter ended March 31, 2020. These
schedules appear below.
Sales
($5 per unit)
Cost of
Gross
Goods Sold
Margin
Schedule 1
$148,300
$124,674
$23,626
Schedule 2
148,300
130,902
17,398
The computation of cost of goods sold in each schedule is based on the following data.
Units
Cost
per Unit
Total
Cost
Beginning inventory, January 1
11,050
$4.10
$45,305
Purchase, January 10
9,050
4.20
38,010
Purchase, January 30
7,050
4.30
30,315
Purchase, February 11
10,050
4.40
44,220
Purchase, March 17
12,050
4.50
54,225
Michelle Walker, the president of the corporation, cannot understand how two different gross margins can be computed from the same set of data. As the vice president of finance, you have
explained to Ms. Walker that the two schedules are based on different assumptions concerning the flow of inventory costs, i.e., FIFO and LIFO. Schedules 1…
Chapter 5 Solutions
24 MONTH MYLAB (MAN)
Ch. 5 - Which account does a merchandiser use that a...Ch. 5 - The two main inventory accounting systems are the...Ch. 5 - The journal entry for the purchase of inventory on...Ch. 5 - JC Manufacturing purchase d inventory for 5,300...Ch. 5 - Prob. 5QCCh. 5 - Suppose Daves Discounts Merchandise Inventory...Ch. 5 - Which of the following accounts would be closed at...Ch. 5 - What is the order of the subtotals that appear on...Ch. 5 - Prob. 9QCCh. 5 - Prob. 10AQC
Ch. 5 - Prob. 11BQCCh. 5 - What is a merchandiser, and what is the name of...Ch. 5 - Prob. 2RQCh. 5 - Describe the operating cycle of a merchandiser.Ch. 5 - What is Cost of Goods Sold (COGS), and where is it...Ch. 5 - How is gross profit calculated, and what does it...Ch. 5 - What are the two types of inventory accounting...Ch. 5 - What is an invoice?Ch. 5 - What account is debited when recording a purchase...Ch. 5 - Prob. 9RQCh. 5 - What is a purchase return? How does a purchase...Ch. 5 - Prob. 11RQCh. 5 - How is the net cost of inventory calculated?Ch. 5 - What are the two journal entries involved when...Ch. 5 - Prob. 14RQCh. 5 - When granting a sales allowance, is there a return...Ch. 5 - Prob. 16RQCh. 5 - Prob. 17RQCh. 5 - Prob. 18RQCh. 5 - What are the four steps involved in the closing...Ch. 5 - Prob. 20RQCh. 5 - Prob. 21RQCh. 5 - Prob. 22RQCh. 5 - Prob. 23RQCh. 5 - Prob. 24ARQCh. 5 - Prob. 25BRQCh. 5 - Prob. 26BRQCh. 5 - Prob. 27BRQCh. 5 - Prob. 28BRQCh. 5 - Prob. 29BRQCh. 5 - Prob. 30BRQCh. 5 - Prob. 31BRQCh. 5 - Comparing periodic and perpetual inventory systems...Ch. 5 - Prob. 5.2SECh. 5 - Prob. 5.3SECh. 5 - Prob. 5.4SECh. 5 - Prob. 5.5SECh. 5 - Prob. 5.6SECh. 5 - Prob. 5.7SECh. 5 - Prob. 5.8SECh. 5 - Prob. 5.9SECh. 5 - Prob. 5.10SECh. 5 - Prob. 5.11SECh. 5 - Prob. 5.12SECh. 5 - Prob. 5.13SECh. 5 - Prob. 5.14SECh. 5 - Prob. 5.15SECh. 5 - Prob. 5.16SECh. 5 - Prob. 5.17SECh. 5 - Prob. 5.18SECh. 5 - Prob. 5.19SECh. 5 - For all exercises, assume the perpetual inventory...Ch. 5 - Journalizing purchase transactions from an invoice...Ch. 5 - Prob. 5.22ECh. 5 - Prob. 5.23ECh. 5 - Prob. 5.24ECh. 5 - Prob. 5.25ECh. 5 - Use the following information to answer Exercises...Ch. 5 - Prob. 5.27ECh. 5 - Prob. 5.29ECh. 5 - Prob. 5.30ECh. 5 - Prob. 5.31ECh. 5 - Prob. 5.32ECh. 5 - Prob. 5.33ECh. 5 - Prob. 5.34ECh. 5 - Prob. 5.35ECh. 5 - Prob. 5.36APCh. 5 - Prob. 5.37APCh. 5 - Prob. 5.38APCh. 5 - Prob. 5.39APCh. 5 - Prob. 5.40APCh. 5 - Prob. 5.41APCh. 5 - Prob. 5.42APCh. 5 - Prob. 5.43BPCh. 5 - Prob. 5.44BPCh. 5 - Prob. 5.45BPCh. 5 - Prob. 5.46BPCh. 5 - Prob. 5.47BPCh. 5 - Prob. 5.48BPCh. 5 - Prob. 5.49BPCh. 5 - Prob. 5.50CPCh. 5 - Prob. 5.51CPCh. 5 - Prob. 5.52PSCh. 5 - Prob. 5.1CTDCCh. 5 - Prob. 5.1CTEICh. 5 - Prob. 5.1CTFC
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