Question

Pamela's Trim and Perm is a retail chain specializing in salon-quality hair care products. During the year, Pamela's Trim and Perm had sales of $39.235.000 The company began the year with 53,775,000 of merchandise inventory and ended the year with $4,750,000 of inventory. During the year, Pamela's Trim and Perm purchased 524,100,000 of merchandise inventory. The company's selling, general, and administrative expenses totaled $7.225.000 for the year. Prepare Pamela's Trim and Perms' income statement for the year. Begin by calculating Pamela's Trim and Perms' cost of goods sold using the table below. Pamela's Trim and Perm Calculation of Cost of Goods Sold For the Year Ended Plus Less

Answer 1

If you have any doubts about the above solution ,please comment, thank you.

solution Given pamela's Trim and perm had." Sales of $39235000 opening inventory of 43775000. doceng inventory of $4750000 - purchases during the year ps $24100000 . Selling, general and administrative expenses is $4225000 pamela's Trim and perm' Income statement for the year particulars Amount (4) Amout($) sales revenue 39,235,000 cost of goods sold: opening inventory 3775000 purchases 24100006 cost of goods avarlable for sale 27875000 less: cloveing inventory (4750000) 7(23125000) Less: cost of goods sold. Gross profit 16110000 Less : operating Expenses (7225000) (selling and admin expenses) Opereeting Income 8885000 Hence, Cost of goods sold is $ 23125000 (computed above and Operating profit is $8885000.