Alpha Company provided the following data concerning its income statement: sales, $1,025,000; purchases, $368,000; beginning inventory, $235,000; ending inventory, $297,000; operating expenses, $111,000; freight-in, $5,000; sales discounts, $15,000; purchases discounts, $15,000; sales returns & allowances, $101,000; and purchases returns & allowances, $32,000. The data are complete and provide the basis for preparation of an income statement. How much is net income?
Net income [Refer working note 1] | $534,000 |
.
.
Working note 1 - Calculation of net income / (loss) | ||
Net sales [Refer working note 2] | $909,000 | |
Expenses: | ||
Cost of Goods Sold [Refer working note 3] | $264,000 | |
Operating Expenses | $111,000 | |
Total expenses [$264,000 + $111,000] | $375,000 | |
Net income [$909,000 - $375,000] | $534,000 |
.
.
Working note 2 | |
Sales | $1,025,000 |
Less: Sales discount | $15,000 |
Less: Sales returns and Allowances | $101,000 |
Net Sales | $909,000 |
.
.
Working note 3 | ||
Beginning merchandise inventory | $235,000 | |
Purchases | $368,000 | |
Less: Purchase Returns and Allowances | $32,000 | |
Purchase Discounts | $15,000 | |
Net Purchases | $321,000 | |
Plus: Freight in | $5,000 | |
Net Cost of Purchases [$321,000 + $5,000] | $326,000 | |
Cost of Goods Available for Sale [$235,000 + $326,000] | $561,000 | |
Less: Ending merchandise inventory | $297,000 | |
Cost of Goods Sold. [$561,000 - $264,000] | $264,000 |
Alpha Company provided the following data concerning its income statement: sales, $1,025,000; purchases, $368,000; beginning inventory,...
1) Alpha Company provided the following data concerning its income statement: sales, $900,000; purchases, $401,000; beginning inventory, $260,000; ending inventory, $252,000; operating expenses, $102,000; freight-in, $5,000; sales discounts, $21,000; purchases discounts, $15,000; sales returns & allowances, $140,000; and purchases returns & allowances, $44,000. The data are complete and provide the basis for preparation of an income statement. How much is net income? 2) Easton Company had average inventory for the year of $640,000 and an inventory turnover ratio of 8.8....
Alpha Company replenished a $500 petty cash fund. The petty cash box contained vouchers of $87 for postage, $173 for supplies, $58 for gasoline, and cash on hand of $180. The journal entry to reflect replenishment would include a: credit to Petty Cash for $2 credit to Cash or $180 debit to Cash Short for $2 credit to Cash for $318 Alpha Company provided the following data concerning its income statement: sales, $1,050,000; purchases, $497,000; beginning inventory, $255,000; ending inventory,...
I need help with these 3 questions, please 1) Given below are account balances for Charlie Company: Gross sales, $94,000 Sales returns and allowances, $4,000 Selling expenses, $12,000 Cost of goods sold, $60,000 Interest expense, $3,000 How much is the gross profit margin? (enter your percentage as a decimal rounded to two decimal places. Example - enter 46% as .46) 2) Alpha Company provided the following data concerning its income statement: sales, $1,040,000; purchases, $458,000; beginning inventory, $275,000; ending inventory,...
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...
1.
For Whitehair Company, beginning inventory is $12,000 and ending
inventory is $15,000. Yearend account balances are:
Freight-In
$1,100
Purchases
50,000
Purchase Discounts
800
Purchase Returns and Allowances
1,250
Sales
Discounts
2,500
Sales
Returns and Allowances
3,600
Whitehair’s Cost of Goods Purchased is
2. In a period of inflation, which cost flow method produces the
highest net income?
For Whitehair Company, beginning inventory is $12,000 and ending inventory is $15,000. Yearend account balances are: $1,100 50,000 800 Freight-In Purchases Purchase...
Zoli Company provided the following information for 2019 Purchases 5,250,000.00 Purchases returns & allowances 150,000.00 Rental Income 250,000.00 Selling Expenses: Freight out 175,000.00 Saleman's Commission 650,000.00 Depreciation - Store Equipment 125,000.00 Merchandise Inventory , January 1,000,000.00 Merchandise Inventory , December 31 1,500,000.00 Sales 7,850,000.00 Sales returns and Allowances 140,000.00 Sales Discounts 10,000.00 Administrative Expenses Officer's Salaries 500,000.00 Depreciation - Office Equipment 300,000.00 Freight in 500,000.00 Income Tax 250,000.00 Loss on Sale...
Zoli Company provided the following information for 2019 Purchases 5,250,000.00 Purchases returns & allowances 150,000.00 Rental Income 250,000.00 Selling Expenses: Freight out 175,000.00 Saleman's Commission 650,000.00 Depreciation - Store Equipment 125,000.00 Merchandise Inventory , January 1,000,000.00 Merchandise Inventory , December 31 1,500,000.00 Sales 7,850,000.00 Sales returns and Allowances 140,000.00 Sales Discounts 10,000.00 Administrative Expenses Officer's Salaries 500,000.00 Depreciation - Office Equipment 300,000.00 Freight in 500,000.00 Income Tax 250,000.00 Loss on Sale...
Could you show me the steps? Thanks :)
Sarasota Corp. uses a periodic inventory system and reports the following information: sales $1,830,000; sales returns and allowances $128,000; sales discounts $31,000; purchases $883,000; purchase returns and allowances $14,000; purchase discounts $15,000; freight in $18,000; freight out $39,000; beginning inventory $94,000; and ending inventory $78,000. Assuming Sarasota uses a multiple-step income statement.
The income statement of Leang's Luggage includes the items listed below: Net sales $875,000 Gross profit 305,000 Beginning inventory 75,000 Purchase discounts 12,000 Purchase returns and allowances 8,000 Freight-in 10,000 Operating expenses 320,000 Purchases 560,000 Instructions Use the appropriate items listed above as a basis for determining: (a) Cost of goods sold. (b) Cost of goods available for sale. (c) Ending inventory.
7. The following details are provided by Western Wear Merchandisers. The company uses the periodic inventory system. (20 Points) AED Net Sales Revenue 198,000 Purchases 94,000 Purchase Returns and Allowances 2,000 Purchase Discounts 1,500 Freight In 1,700 Beginning Merchandise Inventory 63,000 Ending Merchandise Inventory 37,000 Calculate the amount of net purchases. AED