SAMPLE QUIZ 2- Form 1
1. Perry Company reported the following data at year-end: Sales, $100,000; Beginning
inventory, $8,000; Ending inventory, $6,000; Cost of goods sold, $60,000; and Gross
margin, $40,000. What was the amount of merchandise purchases for the year?
E) None of the above
2. Use the following items from Jarchow’s Jumping Jacks income statement to compute
its net income:
Cost of goods sold
Selling, general and administrative expenses
Income tax expense
(Net loss) from discontinued operations (net of tax)
What is Jarchow’s net income to be reported on the income statement?
E) None of the above is correct.
3. Lafferty’s Laughing Lizards gross profit percentage has been increasing in the three
years from 2007 through 2009 from 36.5% to 39.8%.
This change has most likely been
A) higher product costs
B) selling products with lower margins
C) selling products for higher prices
D) none of the above
E) all of the above