FINANCE

Brief Exercise 5-1
Presented here are the components in Casilla Company’s income statement.
Determine the missing amounts.
Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Net Income

 

 

Brief Exercise 5-8
Assume that Tracy Company uses a periodic inventory system and has these account balances: Purchases $404,000; Purchase Returns and
Allowances $13,000; Purchase Discounts $9,000; and Freight-in $16,000.
Determine net purchases and cost of goods purchased.
Net purchases $
Cost of goods purchased $

 

 

Brief Exercise 5-9
Assume that Tracy Company uses a periodic inventory system and has these account balances: Purchases $404,000; Purchase Returns and
Allowances $13,000; Purchase Discounts $9,000; and Freight-in $16,000. Tracy Company has beginning inventory of $60,000, ending
inventory of $90,000, and net sales of $612,000.
Determine the amounts to be reported for cost of goods sold and gross profit.
Cost of goods sold $
Gross profit $

 

 

Brief Exercise 5-10
Durbin Corporation reported net sales of $250,000, cost of goods sold of $150,000, operating expenses of $50,000, net income of $32,500,
beginning total assets of $520,000, and ending total assets of $600,000.
Calculate profit margin and gross profit rate. (Round answers to 0 decimal places, e.g. 10%.)
Profit margin %
Gross profit rate %

 

 

Exercise 5-6 (Part Level Submission)
Presented below is information for Zhou Co. for the month of January 2014.
Cost of goods sold $212,000 Rent expense $32,000
Freight-out 7,000 Sales discounts 8,000
Insurance expense 12,000 Sales returns and allowances 20,000
Salaries and wages expense 60,000 Sales revenue 370,000
(a)
Prepare an income statement using the multi-step format. Assume a 25% tax rate.

 

(b)
Calculate the profit margin and the gross profit rate. (Round answers to 1 decimal place, e.g. 15.2%.)

 

 

Problem 5-2A
McCoy Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. During the
month of June, the following merchandising transactions occurred.
June 1 Purchased books on account for $1,040 (including freight) from Carlin Publishers, terms 2/10, n/30.
3 Sold books on account to the Goldschmidt bookstore for $1,200. The cost of the merchandise sold was $720.
6 Received $40 credit for books returned to Carlin Publishers.
9 Paid Carlin Publishers in full.
15 Received payment in full from the Goldschmidt bookstore.
17 Sold books on account to Town Crier for $1,200. The cost of the merchandise sold was $730.
20 Purchased books on account for $720 from Good Book Publishers, terms 1/15, n/30.
24 Received payment in full from Town Crier.

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