Question

In 2010, the BowWow Company purchased 11,992 units from its supplier at a cost of $ 11 per unit. BowWow sold 11,829 units of its product in 2010 at a price of $ 22 per unit. BowWow began 2010 with $ 845,463 in inventory (inventory is carried at a cost of $ 11 per unit). Using this information, compute BowWow's gross profit for 2010.

Answer 1

1.

11,829 units @ $22 $ 2,60,238.00 Less: Cost of goods sold 11,829 units @ $11| $ 1,30,119.00 $1,30,119.00 Sales Gross Profit

2.

INCOME STATEMENT Gross Sales 90,16,578.00 Less: Return and allowances Net Sales 2,70,497.34 87,46,080.66 Cost of goods Sold 53,44,827.07 Gross Profit 34,01,253.59 Operating Expenses $ 1,19,193.00 $ 18,48,324.00 Depreciation Other Operating Expenses Total Operating Expenses Income from Operations Other Expenses 19,67,517.00 14,33,736.59 $ 6,00,000.00 Interest Expense Total Other Expenses Net Income before Taxes Income Taxes Net Income after Taxes 6,00,000.00 8,33,736.59 3,33,494.64 5,00,241.95