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Unformatted text preview: Merchandise inventory, March 31, 2010 $38,200 Purchases $70,200 Less Purchases Returns and Allowances 2,600 Net Purchases $67,600 Freight-in 2,300 Store Salaries Expense 33,125 Advevtising Expense 23,800 Store Supplies Expense 2,880 Depreciation Expense - Store Equipment 1050 Net Cost of Purchases 130,755 Cost of good available for sale $168,955 Less merchandise inventory March 31, 2011 29,400 Cost of good sold 139,555 Gross Margin $23,445 Operating Expenses Office Salaries Expense 12,875 Rent Expense 2,400 Insurance Expense 1,300 Utilities Expense 1,560 Office Supplies Expense 1,075 Depreciation Expense - Office Equipment 800 Total Operation Expenses $20,010 Net Income $3,435 Profit Margin 2.1% It seems as though Loiuse's Gourmet Shop was isn't very profitably at this very moment. Their profit margin is only 2.1%....
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