Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN: 9781337788281
Author: James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher: Cengage Learning
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cost accounting subject
Transcribed Image Text:The owner of a local souvenir shop in Murrells Inlet is in the process of
preparing an income statement at the end of the first year of operation.
Because it is the first year of operation, there was no inventory at the
beginning of the year. Given the following information: Merchandise
Inventory end of year $20,000Purchases $100,000Freight - in
-
$4,000Sales $200,000Property Taxes - Store $8,000Depreciation - Store
$25,000Insurance Store $7,000Salary - Sales Staff $20,000Advertising
$5,000What is the gross margin?
-
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