Ex. 205
The following information is available for Sager Company:
Administrative expenses$ 30,000
Cost of goods sold245,000
Sales350,000
Sales returns and allowances15,000
Selling expenses50,000
Ex. 205(Cont.)
Instructions
Compute each of the following:
(a)Net sales
(b)Gross profit
(c)Income from operations
Ex. 206
The income statement of Wilcox, Inc. includes the items listed below:
Net sales$900,000
Gross profit360,000
Beginning inventory80,000
Purchase discounts15,000
Purchase returns and allowances8,000
Freight-in10,000
Operating expenses300,000
Purchases590,000
Instructions
Use the appropriate items listed above as a basis for determining:
(a)Cost of goods sold.
(b)Cost of goods available for sale.
(c)Ending inventory.