Wisconsin Company uses the periodic inventory system. Sales for 2016 were $1,880,000 while operating expenses were $700,000. Beginning and ending inventories for 2016 were $280,000 and $240,000, respectively. Net purchases were $720,000 while freight in was $60,000. The net income or loss for 2016 was: Group of answer choices $120,000 net income $ 40,000 net income $360,000 net income $120,000 net loss
We will have to calculate the cost of goods sold in order to determine the net income or loss | ||||||
Cost of goods sold | Beginning inventory + Purchases - Ending inventory | |||||
Cost of goods sold | 280000+(720000+60000)-240000 | |||||
Cost of goods sold | 280000+780000-240000 | |||||
Cost of goods sold | $820,000 | |||||
Calculation of net income or loss is shown below | ||||||
Sales | $1,880,000 | |||||
Less: Cost of goods sold | $820,000 | |||||
Gross profit | $1,060,000 | |||||
Less: Operating expenses | $700,000 | |||||
Net income | $360,000 | |||||
Thus, net income for 2016 is $360,000. | ||||||
Wisconsin Company uses the periodic inventory system. Sales for 2016 were $1,880,000 while operating expenses were...
5 pts Question 10 Wisconsin Company uses the periodic inventory system. Sales for 2016 were $1,880,000 while operating expenses were $700,000. Beginning and ending inventories for 2016 were $280,000 and $240,000, respectively. Net purchases were $720,000 while freight in was $60,000. The net income or loss for 2016 was: $ 40,000 net income $360,000 net income $120,000 net income $120,000 net loss
5 pts Question 9 Baraboo Company uses the periodic inventory system. Sales for 2016 were $940,000 while operating expenses were $350,000. Beginning and ending inventories for 2016 were $140,000 and $120,000, respectively. Net purchases were $360,000 while freight in was $30,000. The net income or loss for 2016 was: $180,000 net income $20,000 net income $60,000 net income $60,000 net loss
ABC Ltd. uses the periodic inventory system and has the following information for 2016. Sales $2,000,000 Beginning Inventory 500,000 Purchases 120,000 Ending Inventory 200,000 The cost of goods sold for ABC Ltd. in 2016 is: Select one: O a. $2,420,000 b. $620,000 O c. $420,000 O d. $200,000
Flounder Corp. uses a periodic inventory system and reports the following information: sales $1,840,000; sales returns and allowances $125,000; sales discounts $29,000; purchases $879,000; purchase returns and allowances $12,000; purchase discounts $15,000; freight in $14,000; freight out $41,000; beginning inventory $99,000; and ending inventory $78,000. Assuming Flounder uses a multiple-step income statement Calculate net sales Net sales $ Calculate net purchases. Net purchases $ Calculate cost of goods purchased. Cost of goods purchased 5 Calculate cost of goods sold. Cost...
Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the quarter ending September 30, 2018: Beginning inventory Net purchases Freight-in Net markups Net markdowns Net sales Cost Retail $360,000 $ 510,000 884,000 1,270,000 41,100 54,000 24,000 1,230,000 Estimate ending inventory and cost of goods sold (LIFO). (Round ratio calculation to 2 decimal places (i.e., 0.1234 should be entered as 12.34%.))
On June 30, 2017, Wisconsin, Inc., issued $300,000 in debt and 15,000 new shares of its $10 par value stock to Badger Company owners in exchange for all of the outstanding shares of that company. Wisconsin shares had a fair value of $40 per share. Prior to the combination, the financial statements for Wisconsin and Badger for the six-month period ending June 30, 2017, were as follows: Wisconsin Badger Revenues $ (900,000 ) $ (300,000 ) Expenses 660,000 200,000 Net...
Kiddie World uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the quarter ending September 30, 2018: Cost Retail Beginning inventory $ 420,000 $ 555,000 Net purchases 915,000 1,330,000 Freight-in 24,650 Net markups 60,000 Net markdowns 30,000 Net sales 1,260,000 Estimate ending inventory and cost of goods sold (LIFO). Cost Retail Cost to Retail Ratio Beginning inventory 420,000 555,000 Plus: Net Purchases 915,000 1,330,000...
* Question 4 Blossom Stores uses a periodic inventory system and reports the following information for 2017: $40,000 Beginning inventory Ending inventory Freight in Net sales Purchase discounts Purchase returns and allowances Purchases $525,000 6,000 9,000 330,000 12,000 10,000 Freight out Prepare the cost of goods sold section of the multiple-step income statement for Blossom Stores. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).) BLOSSOM STORES Income Statement
15) Murdock Industries uses a periodic inventory system and the LIFO retail method to estimate its ending inventories. The following data has been summarized for December 31, 2018: Inventory, January 1 Purchases Net markups Net markdowns Net sales Cost Retail $ 116,000 $ 165,000 355,000 540,000 15,600 9,800 522,000 Required: Estimate the LIFO cost of ending inventory. Assume stable retail prices during the period. (4 pts) Show your work or you will lose 1 point. 16) Harley Inc. uses the...
Roberson Corporation uses a periodic inventory system and the
retail inventory method. Accounting records provided the following
information for the 2016 fiscal year:
Cost
Retail
Beginning inventory
$
315,000
$
590,000
Net purchases
716,000
1,275,000
Freight-in
14,000
Net markups
35,000
Net markdowns
8,000
Normal spoilage
5,000
Net sales
1,490,000
The company records sales to employees net of discounts. These
discounts totaled $34,000 for the year.
Estimate ending inventory and cost of goods sold using the
conventional method.
Cost Retail Cost-to-...