Chapter 6 Turn In Homework Assignment

# Chapter 6 Turn In Homework Assignment - Rachel L Gates...

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Unformatted text preview: Rachel L. Gates ACC-240 Chapter 6 Homework E6-16 Req.1. dr Accounts Receivable (+A)...............................800 cr Sales Revenue (+R,+SE)..................................800 dr Cost of Goods Sold (+E,-SE)............................500 cr Inventory (-A).................................................500 Req.2. dr Cash (+A)........................................................784 dr Sales Discount (+xR,-SE)...................................16 cr Accounts Receivable......................................800 Req.3. dr Cash (+A).........................................................800 cr Accounts Receivable (-A)................................800 Req.4. Gross profit percentage calculation: Net Sales - COGS 784-500 = 284 x 100 = 36.2% Net Sales 800 800 E6-20 Req.1. 2005: (Sales Return & Discounts) 45,211 / 693,342 (Gross Sales) = .065 x 100 = 6.5% 2004: (Sales Return & Discounts) 36,184 / 621,652 (Gross Sales) = .058 x 100 = 5.8% *Based on these percentages, Oakley’s Sales Discounts and Returns have a greater impact in 2005 than in 2004 by 0.7%. Req.2. Oakley’s 2005 Gross Profit Percentage: 57.2% Net Sales – COGS =648,131 – 277,230 = .057 x 100 = 57.2% Net Sales 648,131 Oakley’s 2004 Gross Profit Percentage: 55.2% Net Sales – COGS =585,468 – 262,483 = .0551 x 100 = 55.2% Net Sales 585,468 *The company’s 2005 gross profit percentage of 57.2% improved over 2004 by 2% This shows that Oakley is generating more profit on each dollar of sales, meaning that the company has more funds to cover operating and other expenses....
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Chapter 6 Turn In Homework Assignment - Rachel L Gates...

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