During 2021, Rogue Corporation reported net sales of $600,000. Inventory at both the beginning and end of the year totaled $75,000. The inventory turnover ratio for the year was 6.0. What amount of gross profit did the company report in its 2021 income statement?

During 2021, Rogue Corporation reported net sales of $600,000. Inventory at both the beginning and end of the year totaled $75,000. The inventory turnover ratio for the year was 6.0. What amount of gross profit did the company report in its 2021 income statement?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter10: Inventory

Section: Chapter Questions

Problem 16PB: Use the following information relating to Medinas Company to calculate the inventory turnover ratio,...

See similar textbooks

Related questions

Q: The following data were extracted from the income statement of Keever Inc.: Current Year Previous…

Q: Power Company's income statement for 2021 is given below. If inventory balances are 10000 in 2021…

A: Cost of goods sold means that value of opening stock plus purchases minus closing stock.

Q: Power Company's income statement for 2021 is given below. If inventory balances are 10000 in 2021…

A: Cost of goods sold in the business means how much cost has, been incurred on goods that are being…

Q: The 2021 income statement of Adrian Express reports sales of $16,281,000, cost of goods sold of…

A: Risk ratios refers to the way of measuring the risk involved in a certain type of event happening in…

Q: Six Incorporated reported total purchases of 840,000 under cash basis. For the year 2021, it was…

A: The cost of sales is calculated as subtracting ending inventory from total goods available for sale.…

Q: Power Company's income statement for 2021 is given below. If inventory balances are 5000 in 2021 and…

A: Cost of goods sold = 55,000 Inventory balance in 2020 = 9,000 Inventory balance in 2021 = 5,000…

Q: Power Company's income statement for 2021 is given below. If inventory balances are 5000 in 2021 and…

A: The cash payment include the total payments made in cash during the period.

Q: Power Company's income statement for 2021 is given below. If inventory balances are 10000 in 2021…

A: The question is multiple choice question Required Choose the Correct Option.

Q: The comparative statements of Sheridan Company are presented here. SHERIDAN COMPANY Income…

A: 1. Ratio Analysis - Ratio Analysis shows the various analysis of the financial statement and helps…

Q: Portions of the financial statements for Software Associates are provided below. SOFTWARE…

Q: Presented below is information related to Ivan Calderon Corp. for the year 2020. Net sales…

A: a.

Q: Kingbird, Inc. had net credit sales of $9023000 and cost of goods sold of $5449000 for the year. The…

A: Average days in inventory depict the number of days for which a company holds its inventories before…

Q: The following data are from the income statements of Haskin Company. Year 2017 2016 Sales…

Q: Vaughn Manufacturing had January 1 inventory of $300000 when it adopted dollar-value LIFO. During…

A: Dollar Value LIFO : Inventory valuation is important for accurate cost of goods sold which…

Q: Presented below is information related to Sheffield Corp. for the year 2020. Net sales $1,456,000…

A: An income statement is a report prepared and maintained by the business in order to understand the…

Q: Determine the Inventory Turnover Ratio (ITR) and Days Sales Outstanding (DSO

A: The Inventory Turnover Ratio is the cycle of sale and purchase of goods by a company over a…

Q: The following financial statement was prepared by employees of Walters Corporation. Walters…

A: Income statement of Walter Corporation for the year ended 31st Dec 2012 Particulars Amount Rev…

Q: The income statement of Whitlock Company is presented here. WHITLOCK COMPANY Income Statement For…

A: Cash flow statement: It is the statement which is consists of each and every cash or cash…

Q: The Income statement of Vince Gill Company is shown below. VINCE GILL COMPANY INCOME STATEMENT FOR…

A: Statement of cash flows: This statement reports all the cash transactions which are responsible for…

Q: The data shown below were obtained from the financial records of the BST Corporation for the year…

A: Ratio analysis is a financial accounting technique to measure the overall performance and health of…

Q: Spree Company sold $769,300 of goods during the year at a cost of goods sold of $548,600. Inventory…

A: Inventory turnover ratio: This is a financial measure that is used to evaluate as to how many times…

Q: Čardinal Industries had the following operating results for 2018: Sales = $34,621; Cost of goods…

A: a) Calculate the net income as shown below: Resultant table Hence, the net income is $1,132.50.

Q: Elephant, Inc.'s cost of goods sold for the year is $1,900,000, and the average merchandise…

A: The question is related to Ratio Analysis. The details are Average Inventory = $ 132000 Cost of…

Q: Presented below is information related to Bramble Corp. for the year 2020. Net sales $1,378,000…

A: Income statement which categorized income and expenses into operating and non-operating expenses is…

Q: In its 2015 annual report, Gap Inc. reported inventory of $1,889 million on January 31, 2015, and…

A: Workings: Inventor turnover = Cost of Goods sold / Average inventory.

Q: The income statement of Bridgeport Corp. is presented here. Bridgeport Corp. Income Statement For…

A: Net cash flows From Operating activities =$ 2,022,800 Refer step 2 for Partial Cash flow statement…

Q: The revenue for a firm is $2,500,000. Its cost of revenue is $850,000, and its average inventory for…

A: 1. Inventory turnover ratio= =Cost of goods sold/Average inventory = $850,000/$62,000 =13.71 times

Q: SABM Co. reported net income of P2,100,000 for 2020 . It incurred operating expenses other than…

A: Relationship between Operating Expense and Gross Profit Cost of sales = Net sales - Gross profit We…

Q: SABM Co. reported net income of P2,100,000 for 2020 . It incurred operating expenses other than…

A: "Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Q: Presented below is information related to Sheridan Corp. for the year 2020. Net sales $1,196,000…

A: Multiple-step income statement: It is a detailed statement that provide the net income of the…

Q: Stackhouse Industries had the following operating results for 2020: sales = $54,510; cost of goods…

A: Answer a. Earnings before interest and tax(EBIT) = Sales - Cost of Goods Sold - Depreciation Expense…

Q: In 2018, Martinez Corporation reported net sales of $232,900, cost of goods sold of $139,700,…

A: Given the following information: Year 2018 Net sales: $232,900 Cost of goods sold: $139,700…

Q: Presented below is information related to Sheridan Corp. for the year 2020. Net sales $ 1,196,000…

A: Retained earning means amount of profit remain after all the adjustment of expense and adjustments.…

Q: A company provided the following data: sales, $500,000; beginning inventory, $40,000; ending…

Q: The following data were extracted from the income statement of Keever Inc.: Current Year Previous…

A: Inventory Turnover Ratio represents the number of times the inventory has been sold out in a…

Q: During the year just ended, the retailer James Corporation purchased $450,000 of inventory. The…

A: Inventory turnover is calculated as cost of goods sold divided by average inventory.

Q: For its most recent year a company had Sales (all on credit) of P830,000 and Cost of Goods Sold of…

A: Honor Code: Since you have posted a question with multiple sub-parts, we will solve only the first…

Q: The current assets for OPAL, Inc. were: 2019: Cash $10,000; Accounts Receivable $24,000 and…

A: Formulas - Accounts receivables turnover = Net credit sales / average accounts recievables…

Q: The income statement of Swifty Company is presented here. SWIFTY COMPANY Income Statement For the…

A: The statement of cash flows records all the sources and use of the cash in the business during a…

Q: The Oakland Mills Company has disclosed the following financial information in its annual reports…

A: The cumulative amount of money your company received over a period of time, minus all of its costs,…

Q: CULLUMBER COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $7,410,000…

A: The company's aim will be to increase the profitability of the company. The profits can be arrived…

Q: ABC company's records included the following, assume 365 days in a year: Accounts Receivable,…

A: Given, Cost of sales during 2020 = 5,950,000 Merchandise inventory, 12/31/20 = 900,000 Merchandise…

Q: For the period from 2016 through 2016, the Charlie Company had net sales of $500,000 and a gross…

A: THE GROSS PROFIT METHOD IS A WAY OF CALCULATING THE AMOUNT OF ENDING INVENTORY IN A REPORTING PERIOD…

Q: The income statement of Sunland Company is shown below. SUNLAND COMPANY INCOME STATEMENT FOR THE…

A: INDIRECT METHOD OF CASH FLOW STATEMENT : CASH FLOW FROM OPERATING ACTIVITIES NET INCOME ADD…

Q: Chyna Corporation has the following statement of comprehensive income for the year ended December…

A: Over (under) recorded inventory = Recorded ending inventory - Correct ending inventory = $12,000 -…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Calculate the cost of goods sold.

VIEW

Step 2: Calculate the gross profit:

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Use the following information relating to Medinas Company to calculate the inventory turnover ratio, gross margin, and the number of days sales in inventory ratio, for years 2022 and 2023.
Last year, Nikkola Company had net sales of 2,299,500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average inventory. 2. Calculate the inventory turnover ratio. 3. Calculate the inventory turnover in days. 4. CONCEPTUAL CONNECTION Based on these ratios, does Nikkola appear to be performing well or poorly?
The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
On December 31, Pitts Manufacturing Company reports the following assets: What is the total amount of Pitts inventory at year-end?
In its 2018 annual report, Gap Inc. reported inventory of $1,997 million on January 31, 2018, and $1,830 million on February 1, 2017, cost of goods sold of $9,789 million for 2018, and net sales of $15,855 million. Compute Gap’s inventory turnover and the average days to sell inventory for the fiscal year 2018.
Ayayai Ltd. had the following 2020 income statement data: Sales $205,600 Cost of goods sold 119,400 Gross profit 86,200 Operating expenses (includes depreciation of $22,400) 48,300 Income before income taxes 37,900 Income taxes 15,000 Net income $22,900 The following accounts increased during 2020 by the amounts shown: Accounts Receivable, $16,000; Inventory, $10,500; Accounts Payable (relating to inventory), $14,000; Taxes Payable, $2,000; and Mortgage Payable, $40,200.
The following data were obtained from the books of JOYFUL CORPORATION: Accounts receivable, March 31, 2021 – P110,000; Accounts receivable, September 30, 2021 – P130,000; Purchases, March to September 2021 – P450,000; Inventory, March 31, 2021 – P180,000; Average gross profit rate – 40%; Accounts receivable turnover – 6 to 1. The Inventory at September 30, 2021 should be ______. A. 198,000B. 150,000C. 120,000d. None of these
The following data were obtained from the books of JOYFUL CORPORATION: Accounts receivable, March 31, 2021 – P110,000; Accounts receivable, September 30, 2021 – P130,000; Purchases, March to September 2021 – P450,000; Inventory, March 31, 2021 – P180,000; Average gross profit rate – 40%; Accounts receivable turnover – 6 to 1. The Inventory at September 30, 2021 should be ______. A. 198,000B. 150,000C. 120,000
Sheffield Inc. reported the following partial statement of income data for the years ended December 31, 2024 and 2023: Sales Cost of goods sold Gross profit (a) The company reported inventory in the statement of financial position at $46,000, $49,500, and $48,000 at the end of 2022, 2023, and 2024, respectively. The ending inventory amounts for 2022 and 2024 are correct. However, the company has understated the ending inventory at December 31, 2023, by $7,620. Sales 2024 $263,000 Cost of goods sold 204,000 $59,000 Your answer has been saved. See score details after the due date. Prepare correct statements of income for 2023 and 2024 through to gross profit. 2024 Gross profit (b) 2023 $254,000 199,390 $54,610 $ eTextbook and Media 263000 211620 51380 $ $ 2023 Cumulative effect of the inventory error on total gross profit $ 254000 191770 62230 Attempts: 1 of 1 used What is the cumulative effect of the inventory error on total gross profit for these two years? (If answer is zero, please…
Data taken from the records of XYZ Co. revealed the following for 2020: Inventory - January 1 :P2,000,000; Net purchases : P7,000,000; Inventory - December 31 : P2,800,000; Sales Returns and allowances: P750,000. Gross profit based on net sales is 20%. How much is the gross sales for 2020? A. P7,000,000 B. P7,750,000 C. P8,500,000 D. P9,125,000 E. answer not given
The following are the comparative financial statements for Outland Corporation for 2020 and 2019: OUTLAND CORPORATION Statement of Income For Periods Ending October 31 Sales Revenue Cost of Goods Sold Gross Profit.. 2020 167,500 100,000 67,500 2019 140,000 85,000 55,000 Expenses Depreciation Selling and Administrative Interest Expense. Total Expenses. 15,000 22,500 15,000 15,000 47,500 35,000 Net Income (before taxes). Income Taxes 25,000 10,000 15,000 22,500 7,500 15,000 Net Income OUTLAND CORPORATION Statement of Financial Position As at October 31 2020 2019 Assets Current Assets: 4,000 10,000 35,000 31,000 80,000 Cash. 2,500 7,500 30,000 25,000 65,000 Marketable Securities. Accounts Receivable. Inventory Total Current Assets Investments (at cost).. 30,000 32,500 Property, plant and equipment Property, Plant and Equipment.. Less: Accumulated Depreciation. 200,000 87,500 112,500 2,500 225,000 190,000 80,000 110,000 2,500 210,000 Goodwill Total Assets Liabilities and Shareholders'…
The 2021 Income statement of Anderson Medical Supply Company reported net sales of $12 million, cost of goods sold of $6.2 million, and net Income of $870,000. The following table shows the company's comparative balance sheets for 2021 and 2020: Assets Cash Accounts receivable Inventory Property, plant, and equipment (net) Total assets Liabilities and shareholders' equity Current liabilities Bonds payable Common stock Retained earnings Total liabilities and shareholders' equity Inventory turnover ratio Receivables turnover ratio Average collection period Asset turnover ratio ($ in thousands) 2821 2820 times times days times $ 588 $ 660 988 640 1,608 3,800 $ 6,960 1,010 3,520 $5,830 Required: 1. Calculate Anderson's turnover ratios for 2021. (Use 365 days a year. Round your answers to 2 decimal places.) $1,240 1,908 2,488 1,428 $ 6,968 $ 5,830 $1,110 1,900 2,400 420