ACCOUNTING

roblem 5-3A Part 4

4. Compute the current ratio, acid-test ratio, and gross margin ratio as of January 31, 2011. (Round your answers to 2 decimal places.)

 

   
  Current ratio [removed]
  Acid-test ratio [removed]
  Gross margin ratio [removed]

 

Problem 5-4A Computing merchandising amounts and formatting income statements L.O. C2, P4

[The following information applies to the questions displayed below.]

BizKid Company’s adjusted trial balance on August 31, 2011, its fiscal year-end, follows.

 

      Debit     Credit  
  Merchandise inventory   $ 31,000        
  Other (noninventory) assets     120,400        
  Total liabilities         $ 35,000  
  N. Kidman, Capital           101,650  
  N. Kidman, Withdrawals     8,000        
  Sales           212,000  
  Sales discounts     3,250        
  Sales returns and allowances     14,000        
  Cost of goods sold     82,600        
  Sales salaries expense     29,000        
  Rent expense—Selling space     10,000        
  Store supplies expense     2,500        
  Advertising expense     18,000        
  Office salaries expense     26,500        
  Rent expense—Office space     2,600        
  Office supplies expense     800        
   


 


 
  Totals   $ 348,650   $ 348,650  
   




 




 

 

On August 31, 2010, merchandise inventory was $25,000. Supplementary records of merchandising activities for the year ended August 31, 2011, reveal the following itemized costs.

 

     
  Invoice cost of merchandise purchases $ 91,000
  Purchase discounts received   1,900
  Purchase returns and allowances   4,400
  Costs of transportation-in   3,900

 

Problem 5-4A Part 1

Required:
1. Compute the company’s net sales for the year. (Omit the “$” sign in your response.)

 

  Net sales $ [removed]

 

Problem 5-4A Part 2

2. Compute the company’s total cost of merchandise purchased for the year. (Omit the “$” sign in your response.)

 

  Total cost of merchandise purchased $ [removed]

 

Problem 5-4A Part 3

3. Prepare a multiple-step income statement that includes separate categories for selling expenses and for general and administrative expenses. (Input all amounts as positive values. Omit the “$” sign in your response.)

 

BIZKID COMPANY
Income Statement
For Year Ended August 31, 2011
    $ [removed]
  $ [removed]  
  [removed] [removed]
 


    [removed]
    [removed]
   

    [removed]
  Expenses    
  Selling expenses    
  [removed]  
  [removed]  
  [removed]  
  [removed]  
 

 
    Total selling expenses   [removed]
  General and administrative expenses    
  [removed]  
  [removed]  
  [removed]  
 

 
    Total general and administrative expenses   [removed]
   

  Total expenses   [removed]
   

    $ [removed]
   

Problem 5-4A Part 4

4. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses. (Input all amounts as positive values. Omit the “$” sign in your response.)

 

BIZKID COMPANY
Income Statement
For Year Ended August 31, 2011
    $ [removed]
  Expenses    
  $ [removed]  
  [removed]  
  [removed]  
 

 
      Total expenses   [removed]
   

    $ [removed]

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