A business has sales of $300,000, net income of 560,000, beginning inventory of
ID: 2393513 • Letter: A
Question
A business has sales of $300,000, net income of 560,000, beginning inventory of $15,000, purchases of $195,000, and operating of $80,000 What is the value of ending inventory for this bunine 180,000 b. $210,000 d. 550,000 . 565,000 of $60,000, and cost of goods sold of $41,000. What would sales be for this company? b. $241,000 5200,000 $95,000 5163,000, and 3 A business has sales of $205,000, ending inventory of $12,000, a net loss of $16,000, operating expenses of si6 purchases of $48,000, What is the value of beginning inventory? a $118,000 c. $22,000 b. $42,000 d. $30,000 one Garber Garter Company lends Ne vell Company S20,0000 April, accepting a four-m ont os interest Company prepares financial statements on April 30. What adjusting entry should be made 4 statements can be prepared? 20,000 a. Note Receivable b. Interest Receivable c. Cash d. Interest Receivable 20,000 Cash 100 100 Interest Revenue 100 100 Interest Revenue 300 300 Interest Revenue 5 Which of the following expressions is incorrect? a. Gross profit- operating expenses - net income b. Sales cost of goods sold- operating expenses-net income c. Net income + operating expenses gross profit d· Operating expenses-cost of goods sold-gross profit o ih of he folown nount would Merchaseeryon the bolance d be reported as Merchandise Inventory on the balance sheet of a company if the cost of an item is $110 and the current replacement cost is $902 ?) $200 B) The average of $90 and $110 C) $110 D) $90Explanation / Answer
Solution 1:
Net Income = Sales - cost of Goods Sold - Operating expenses
$60,000 = $300,000 - Cost of goods sold - $80,000
Cost of goods sold = $300,000 - $80,000 - $60,000 = $160,000
Now,
Cost of goods sold = Beginning inventory + purchases - Ending Inventory
$160,000 = $15,000 + $195,000 - Ending Inventory
Ending inventory = $210,000 - $160,000 = $50,000
Henec option "d" is correct.
Solution 2:
Net income = Sales - cost of goods sold - operting Expenses
$120,000 = Sales - $41,000 - $80,000
Sales = $120,000 + $41,000 + $80,000 = $241,000
Hence option "b" is correct.
Solution 3:
Net income = Sales - cost of goods sold - operting Expenses
-$16,000 = $205,000 - cost of goods sold - $163,000
Cost of goods sold = $205,000 - $163,000 + $16,000 = $58,000
Now,
Cost of goods sold = Beginning Inventory + purchases - ending inventory
$58000 = Beginning Inventory + $48000 - $12000
Beginning Inventory = $58000 - $48000 +$12000 = $22,000
Hence option "c" is correct.
Solution 4:
Interest on Note for month of april = $20,000*6%*1/12 = $100
Entry for interest accrued for one month will be:
Interest Receivable Dr $100
To Interest Revenue $100
Hence option "b" is correct.
Solution 5:
"Operating Expense - cost of goods sold = Gross profit " is incorrect because gross profit is the difference between sales and cost of goods sold.
Hence Option "d" is correct.
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