4-28 - 04-28 Name: Enter the appropriate amounts/formulas...

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04-28 Name: Enter the appropriate amounts/formulas in the blue-shaded cells. The word “Wrong” will appear to the left of incorrect entries. SUPPORTING COMPUTATIONS Cost of goods sold as a percentage of sales: If general expenses = 15% of sales and 25% of cost of goods sold then: 15% of sales = 25% of cost of goods sold Cost of goods sold = 15% / 25% Cost of goods sold = 60% of sales Income before income taxes as a % of sales: Sales 100% Cost of goods sold (percentage from above) 60% Gross profit on sales 0% Selling expenses 13% General expenses 17% 30% Income before income taxes as a percentage of sales 10% Sales: Income before income taxes $160,000 / income before income taxes percentage (from above) 10% Sales $1,600,000 Net purchases: Cost of goods sold $960,000 Less: Beginning inventory 136,000 Plus: Ending inventory 95,200 Net purchases $919,200 Selling expenses: Sales (dollar amount from above) $1,600,000 x Selling expenses percentage (from above) 13% Selling expenses $208,000
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This note was uploaded on 08/12/2011 for the course ACCT 2201 taught by Professor Alvarez during the Spring '11 term at FIT.

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4-28 - 04-28 Name: Enter the appropriate amounts/formulas...

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