Gross billings for merchandise sold by pye company to

27. Gross billings for merchandise sold by Pye Company to its customers last year amounted to
$12,720,000; sales returns and allowances were $270,000, sales discounts were $175,000,
and freight-out was $140,000. Net sales last year for Pye Company were (E)
A. $12,720,000. C. $12,275,000.
B. $12,450,000. D. $12,135,000. K, W & W
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Gross profit, purchases & ending inventory given
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30. Hernandez Company had a gross profit of $240,000, total purchases of $280,000, and an
ending inventory of $160,000 in its first year of operations as a retailer. Hernandez’s sales in
its first year must have been (E) . The total operating expenses of Travelodge Company for 2012 is 50% of cost of sales but
only 20% of sales. Finance costs are 5% of sales. The amount of purchases is 130% of costs
of sales. Ending inventory is 25% greater than the beginning inventory. The profit for the
period after the tax of 30% is P2,450,000. How much were the beginning inventory? (D)
A. 4,000,000 C. 6,000,000
B. 4,800,000 D. 5,000,000 HGT 55. A company has a 40% gross margin, general and administrative expenses of $50, interest
expense of $20, and net income of $70 for the year just ended. If the corporate tax rate is
30%, the level of sales revenue for the year just ended was (E)
CIA 1194 IV-16
56. A company has a 50% gross margin, general and administrative expenses of $50, interest
expense of $20, and net income of $10 for the year just ended. If the corporate tax rate is
50%, the level of sales revenue for the year just ended was (E)
A. $90 C. $150
B. $135 D. $180 CIA 1194 IV-16
57. The profit of Imperial Company for the year ended December 31, 2012 was P480,000.
Percentage distribution of some of the items in profit or loss was as follows:
 Selling expenses – 10% of sales
 Administrative expenses, excluding bad debts – 15% of sales ( also equal to 25% of cost
of sales)
 Bad debts expenses – 3% of sales
What was the amount of Imperial Company’s sales during 2012?
Cost of Goods Sold
Beginning Inventories
58. A retail enterprise maintains a markup of 25% based on cost. The enterprise has the
following information for 2001:
Purchases of merchandise 690,000
Freight-in on purchases 25,000
Sales 900,000
Ending inventory 80,000
Beginning inventory was (E)