Question

On January 1, 2019, Sheffield Corp. had inventory of $52,000. At December 31, 2019, Sheffield had the following account balances. Freight-in Purchases Purchase discounts Purchase returns and allowances Sales revenue Sales discounts Sales returns and allowances $4,100 504,000 6,350 3,150 803,000 5,400 10,300 At December 31, 2019, Sheffield determines that its ending inventory is $62,000. Compute Sheffield's 2019 gross profit. Gross profit $ e Textbook and Media Compute Sheffield's 2019 operating expenses if net income is $134,000 and there are no nonoperating activities. Operating expenses $ e Textbook and Media

Answer 1

1 Particulars 2 Purchases 3 Less: Purchase discount 4 Less: Purchase return and allowance 5 Add: Freight in 6 Net Purchase 7 Add: Beginning inventory 8 Total cost of goods available for sale 9 Less: Ending inventory 10 Cost of goods sold 11 12 Sales revenue 13 Less: Sales discounts 14 Less: Sales return and allowance 15 Net sales revunue Amount Amount $ 504,000 $ -6,350 $ -3,150 $ 4,100 $ 498,600 $ 52,000 $ 550,600 $ -62,000 $ 488,600 $ 803,000 $ -5,400 $ -10,300 $ 787,300 16 $ 787,300 $-488,600 $ 298,700 17 Net sales revunue 18 Cost of goods sold 19 Gross profit 20 21 Gross profit 22 Less: Net income 23 Operating expenses $ 298,700 $ 134,000 $ 164,700

1 Amount Particulars Amount 2 Purchases 504000 3 Less: Purchase discount -6350 4 Less: Purchase return and allowance -3150 5 Add: Freight in 4100 6 Net Purchase 7 Add: Beginning inventory 8 Total cost of goods available for sale 9 Less: Ending inventory 10 Cost of goods sold =SUM(B2:35) 52000 =+C6+C7 -62000 =+C8+C9 11 803000 -5400 -10300 =+B12+B13+B14 12 Sales revenue 13 Less: Sales discounts 14 Less: Sales return and allowance 15 Net sales revunue 16 17 Net sales revunue 18 Cost of goods sold 19 Gross profit =+B15 --C10 =+B17+B18 20 =+B19 21 Gross profit 22 Less: Net income 23 Operating expenses 134000 =+B21-B22