Chapter #6 Puzzler
Merchandiser’s Income Statement Puzzler
Using the following information, calculate (a) net sales, (b) cost of goods sold, (c) gross margin from sales, and (d) net income.
|
Freight In |
$ 400 |
|
Merchandise Inventory, Jan.1 |
30,000 |
|
Gross Sales |
120,000 |
|
Purchase Discounts |
600 |
|
Advertising Expense |
8,000 |
|
Purchases |
40,000 |
|
Merchandise Inventory, Dec.31 |
10,000 |
|
Sales Returns and Allowances |
1,000 |
|
General and Administrative Expenses |
14,000 |
Net Sales a. ____________________
Cost of Goods Sold b. ____________________
Gross Margin from Sales c. ____________________
Net Income d. ____________________
Please send your solutions and your calculations to the Discussion List!