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ton (a) Determine the missing amounts. (b) Determine the gross profit rates. (Ro

ID: 2555080 • Letter: T

Question

ton (a) Determine the missing amounts. (b) Determine the gross profit rates. (Round to one decimal place.) ES-14 Financial information is presented below for three different companies. Compute missing amor (LO 5) Allen Corr Bast Cosmetics Grocery Wholesalers Sales revenue Sales returns and allowances Net sales Cost of goods sold Gross profit Operating expenses Income from operations Other expenses and losses Net income $122,000 12,000 $90,000$(e) 5,000 95,000 86,000 56,000 G) 24,000 18,000 15,00038,000 7,000 11,000 4,000 5,000

Explanation / Answer

Allen Cosmetics Bast Grocery Corr Wolesalers Sales revenue $                                       90,000 $95,000+$5,000 = $100,000 $                                          122,000 Sale returns and allowances $90,000-$86,000 = $4,000 $                                           5,000 $                                            12,000 Net sales $                                       86,000 $                                        95,000 $122,000-$12,000 = $110,000 Cost of goods sold $                                       56,000 $95,000-$38,000 = $57,000 $110,000-$24,000 = $86,000 Gross profit $86,000-$56,000 = $30,000 $                                        38,000 $                                            24,000 Operating expenses $                                       15,000 $38,000-$18,000 = $20,000 $                                            18,000 Income from operations $30,000-$15,000 = $15,000 $11,000+$7,000 = $18,000 $24,000-$18,000 = $6,000 Other expenses and losses $                                          4,000 $                                           7,000 $6,000-$5,000 = $1,000 Net income $15,000-$4,000 = $11,000 $                                        11,000 $                                               5,000