Question

2n | Salon Hair is a retail chain speciating in sually hair care products During the your Salon Hoxhad of 850.000. The company began the year 3.500.000 of merchandisinvertory and ended the year with $4,445.000 of Inventory. During the year, Salon Hair purchased $23.875.000 of merchandise vertory. The company's singer and persed 7,100,000 for the year. Prepare Baton Hanscometer for the year Begin by calculating Baton Hair's cost of goods sold wing the table below Salon Calculation of Cost of Goods Sold For the Year Ended Pus

Answer 1

Salon Hair

Calculation of cost of goods sold

For the year ended

Begining Inventory	$3,500,000
Plus: Purchases	$23,975,000
Cost of Goods Avaialble for Sale	$27,475,000
Less: Ending Inventory	($4,445,000)
Cost of Goods Sold	$23,030,000

Income Statement

Sales	$38,850,000
Less: Cost of Goods Sold	($23,030,000)
Gross Profit	$15,820,000
Less: Selling, General, Administration Expenses	($7,100,000)
Net Profit	$8,720,000