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Unformatted text preview: Miriam Reynoso Financial accounting Chapter 5 and 6 5-1During the cur rent year, merchandise is sold for $ 795,000. The cost of the merchandise sold is $ 477,000 a) What is the amount of the gross profit? 318,000 b) Compute the gross profit percentage ( gross profit divided by sales). 40% c. Will the income statement necessarily report a net income? Explain. Not necessarily because you have not deducted other expenses 5-2 I n 2007, Best Buy reported revenue of $ 35,934 million. I ts gross profit was $ 8,769 mil-lion. What was the amount of Best Buys cost of merchandise sold? 27,165 millions 5-4 The following data were extracted from the accounting records of Wedgeforth Company for the year ended November 30, 2010: Merchandise inventory, December 1, 2009 $ 210,000 Merchandise inventory, November 30, 2010 185,000 Purchases 1,400,000 Purchases returns and allowances 20,000 Purchases discounts 18,500 Sales 2,250,000 F reight in 14,100 a. Prepare the cost of merchandise sold a) Statement Merchandise inventory as December 1, 2009 $210,000 Purchases 1,400,000 Less purchases returns and allowance 20,000 Purchase discount 18,500 Net purchases 1,361,500 Freight in 14,100 1,375,600 merchandise available for sale $1,585,600 Merchandise inventory November 30, 2010...
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- Spring '11
- Financial Accounting