Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
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Chapter 5, Problem 7MCQ
To determine
Identify the correct answer for the given statement.
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A company shows the following balances:
Sales
$1,000,000
225,000
25,000
600,000
13
Sales Returns and Allowances
Sales Discounts
Cost of Goods Sold
What is the gross profit rate?
a. 60%
b. 80%
c. 40%
d. 20%
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Sales
Cost of goods sold
Operating expenses
Sales discounts
Sales returns and
allowances
Interest revenue
P
460,000
300,000
85,000
20,000
15,000
5,000
From the details above, compute the net sales.
Sales
460,000
Cost of goods sold
300,000
Operating expenses
85,000
Sales discounts
20,000
Sales returns and
allowances
15,000
Interest revenue
5,000
From the details above, compute the net sales.
Chapter 5 Solutions
Financial Accounting
Ch. 5 - In each separate situation, identify which company...Ch. 5 - Prob. 2YTCh. 5 - Prob. 3YTCh. 5 - Prob. 4YTCh. 5 - Prob. 5YTCh. 5 - Jaynes Jewelry Store purchased three diamond and...Ch. 5 - Prob. 7YTCh. 5 - Prob. 8YTCh. 5 - Prob. 9YTCh. 5 - Prob. 1Q
Ch. 5 - What is the difference between freight-in and...Ch. 5 - What is the difference between a purchase return...Ch. 5 - What is a purchase discount? What is the effect of...Ch. 5 - Prob. 5QCh. 5 - Prob. 6QCh. 5 - Prob. 7QCh. 5 - What is the difference between a periodic and...Ch. 5 - What is inventory shrinkage?Ch. 5 - What is the difference between the physical flow...Ch. 5 - What are the common cost flow methods for...Ch. 5 - If inventory costs are rising, which method (FIFO,...Ch. 5 - If inventory costs are rising, which method (FIFO,...Ch. 5 - Does LIFO or FIFO give the bestmost currentbalance...Ch. 5 - How do taxes affect the choice between LIFO and...Ch. 5 - Does the periodic or perpetual choice affect the...Ch. 5 - What is the lower-of-cost-or-market rule and why...Ch. 5 - What does the gross profit percentage measure? How...Ch. 5 - What does the inventory turnover ratio measure?...Ch. 5 - What are some of the risks associated with...Ch. 5 - Prob. 1MCQCh. 5 - Prob. 2MCQCh. 5 - Prob. 3MCQCh. 5 - Prob. 4MCQCh. 5 - Prob. 5MCQCh. 5 - Prob. 6MCQCh. 5 - Prob. 7MCQCh. 5 - Prob. 8MCQCh. 5 - Prob. 9MCQCh. 5 - Prob. 10MCQCh. 5 - Prob. 1SEACh. 5 - Prob. 2SEACh. 5 - Prob. 3SEACh. 5 - Prob. 4SEACh. 5 - Prob. 5SEACh. 5 - Prob. 6SEACh. 5 - Prob. 7SEACh. 5 - Prob. 8SEACh. 5 - The following information pertains to item #007SS...Ch. 5 - Prob. 10SEACh. 5 - Prob. 11SEBCh. 5 - Prob. 12SEBCh. 5 - Prob. 13SEBCh. 5 - Prob. 14SEBCh. 5 - Prob. 15SEBCh. 5 - Prob. 16SEBCh. 5 - Prob. 17SEBCh. 5 - Given the following information, calculate the...Ch. 5 - Prob. 19SEBCh. 5 - Prob. 20SEBCh. 5 - Prob. 21EACh. 5 - Prob. 22EACh. 5 - Prob. 23EACh. 5 - Prob. 24EACh. 5 - August 11Purchased four units at 400 each August...Ch. 5 - Prob. 26EACh. 5 - Prob. 27EACh. 5 - Prob. 28EACh. 5 - Prob. 29EACh. 5 - Prob. 30EACh. 5 - Given the following information, calculate the...Ch. 5 - Prob. 32EBCh. 5 - Prob. 33EBCh. 5 - Prob. 34EBCh. 5 - Prob. 35EBCh. 5 - Prob. 36EBCh. 5 - Prob. 37EBCh. 5 - Assume Radio Tech uses a perpetual inventory...Ch. 5 - Prob. 39EBCh. 5 - Prob. 40EBCh. 5 - Prob. 41EBCh. 5 - Prob. 42EBCh. 5 - Prob. 43PACh. 5 - Prob. 44PACh. 5 - Prob. 45PACh. 5 - The following transactions occurred during July...Ch. 5 - Prob. 47PACh. 5 - Prob. 48PACh. 5 - Calculate cost of goods sold and ending inventory;...Ch. 5 - Prob. 50PACh. 5 - Green Bay Cheese Company is considering changing...Ch. 5 - The following information is for Leos Solar...Ch. 5 - Prob. 53PACh. 5 - Prob. 54PBCh. 5 - Prob. 55PBCh. 5 - Prob. 56PBCh. 5 - Prob. 57PBCh. 5 - Prob. 58PBCh. 5 - Prob. 59PBCh. 5 - Calculate cost of goods sold and ending inventory;...Ch. 5 - Prob. 61PBCh. 5 - Castana Company is considering changing inventory...Ch. 5 - The following information is for Falling Numbers...Ch. 5 - Prob. 64PBCh. 5 - Prob. 1FSACh. 5 - Prob. 2FSACh. 5 - Prob. 3FSACh. 5 - Prob. 1CTPCh. 5 - Prob. 2CTP
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- 3. Refer to the following table: What is the gross profit? Sales revenue $460,000 Cost of goods sold 300,000 Sales discounts 20,000 Sales returns and allowances 15,000 Operating expenses 85,000 Interest revenue 5,000 O$125,000 O$105,000 O$140,000 O$90,000arrow_forwardFinancial information is presented below: Operating Expenses $ 44,000 Sales Returns and Allowances 13,000 Sales Discounts 6,000 Sales 170,000 Cost of Goods Sold 77,000. Gross profit would be?arrow_forward15. Sales revenue P480,000 Cost of goods sold Sales discounts 300,000 20,000 15,000 Sales returns and allowances Operating expenses 85,000 Interest revenue 5,000 A.What is net sales revenue? a. P400,000 b. P445,000 P415,000 d. P455,000 с. B.What is gross margin? а. Р145,000 b. P105,000 C. P140,000 d. P90,000arrow_forward
- Using the financial information is presented below: Operating Expenses $ 55,000 Sales Returns and Allowances 13,000 Sales Discount 6,000 Sales 160,000 Costs of Goods Sold 77,000 The amount of Gross Profit would be?arrow_forwardFrom the following details, calculate net sales revenue. Sales Revenue $460,000 Sales Discounts Forfeited 6,000 Cost of Goods Sold 300,000 Operating Expenses 78,000 Interest Revenue 7,000 A. $473,000 B. $466,000 C. $454,000 D. $460000arrow_forwardUse the Financial information is presented below to determine the Gross Profit: Operating expenses $ 40,000 Sales revenue 200,000 Cost of goods sold 150,000 a. $160,000.b. $ 40,000.c. $ 50,000.d. $ 10,000.arrow_forward
- Sales revenue $350,000 Accounts receivable $280,000 Ending inventory $230,000 Cost of goods sold $180,000 Sales returns $50,000 Sales discount $20,000 What is the gross profit? numeric response:????????arrow_forwardSafety Company had $45,000 in gross sales, $1,200 in sales discounts, $10,000 in cost of goods sold, $5,500 in selling expenses, $600 in sales returns and allowances, and $7,200 in general expenses. What is Safety Company net sales? a.$35,000 b.$43,200 c.$20,500 d.$33,200arrow_forwardGross sales $ 19,000 $ 15,000 Sales returns and allowances 1,000 100 Net sales $ 18,000 $ 14,900 Cost of merchandise (goods) sold 12,000 9,000 Gross profit $ 6,000 $ 5,900 Operating expenses: Depreciation $ 700 $ 600 Selling and administrative 2,200 2,000 Research 550 500 Miscellaneous 360 300 Total operating expenses $ 3,810 $ 3,400 Income before interest and taxes $ 2,190 $ 2,500 Interest expense 560 500 Income before taxes $ 1,630 $ 2,000 Provision for taxes 640 800 Net income $ 990 $ 1,200 LOGIC COMPANYComparative Balance SheetDecember 31, 2019 and 2020 2020 2019 Assets Current assets: Cash $ 12,000 $ 9,000 Accounts receivable 16,500 12,500 Merchandise inventory 8,500 14,000 Prepaid expenses 24,000 10,000 Total current assets $ 61,000 $ 45,500 Plant and equipment: Building (net) $ 14,500 $ 11,000 Land 13,500 9,000 Total plant and equipment…arrow_forward
- Sales revenue $104,000 $enter a dollar amount Sales returns and allowances enter a dollar amount 4,000 Net sales 98,000 129,000 Cost of goods sold 64,600 enter a dollar amount Gross profit enter a dollar amount 56,760 Operating expenses 20,400 enter a dollar amount Net income enter a dollar amount 21,930 Fill in the missing amounts.arrow_forwardFinancial information is presented below: Operating Expenses $ 90,000 Sales Returns and 26,000 Allowances Sales Discounts 12,000 Sales Revenue 300,000 Cost of Goods Sold 158,000 The gross profit % (rate) would be a) .542. O b) .473. O c) ,397. Od) ,347.arrow_forwardUsing the financial information presented below: Operating Expenses $ 55,000 Sales Returns and Allowances 13,000 Sales Discount 6,000 Sales 160,000 Costs of Goods Sold 77,000 What would the amount of net sales on the income statement would be and what would the profit margin rate be?arrow_forward
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