or office space 2,400,000 Officers' salaries 3,000,000 Insurance 1,700,000 Sales representative salaries 1,200,000 Freight out 300,000 Rent for store space 200,000 Advertising expense 800,000 The cost of goods sold is six times the selling expenses. 1. What amount should be reported as goods available for sale the current year? 2. What amount should be reported as cost of goods sold for the current year?

or office space 2,400,000 Officers' salaries 3,000,000 Insurance 1,700,000 Sales representative salaries 1,200,000 Freight out 300,000 Rent for store space 200,000 Advertising expense 800,000 The cost of goods sold is six times the selling expenses. 1. What amount should be reported as goods available for sale the current year? 2. What amount should be reported as cost of goods sold for the current year?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 3RE: Shaquille Corporation began the current year with inventory of 50,000. During the year, its...

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The following data were collected for a retailer:Cost of goods sold $3,500,000Gross profit $700,000Operating costs $500,000Operating profit $200,000Total inventory $1,200,000Fixed assets $750,000Long-term debt $300,000Assuming 52 business weeks per year, express total inventory asa. Weeks of supplyb. Inventory turns
InThe income statement of Pina Company is shown below. PINA COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,610,000 Cost of goods sold Beginning inventory $1,910,000 Purchases 4,530,000 Goods available for sale 6,440,000 Ending inventory 1,630,000 Cost of goods sold 4,810,000 Gross profit 1,800,000 Operating expenses Selling expenses 450,000 Administrative expenses 680,000 1,130,000 Net income $670,000 Additional information: 1. Accounts receivable decreased $300,000 during the year. 2. Prepaid expenses increased $180,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $280,000 during the year. 4. Accrued expenses payable decreased $110,000 during the year. 5. Administrative expenses include depreciation expense of $70,000. Prepare…
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The income statement of Cheyenne Company is shown below. CHEYENNE COMPANYINCOME STATEMENTFOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,890,000 Cost of goods sold Beginning inventory $1,910,000 Purchases 4,410,000 Goods available for sale 6,320,000 Ending inventory 1,620,000 Cost of goods sold 4,700,000 Gross profit 2,190,000 Operating expenses Selling expenses 460,000 Administrative expenses 700,000 1,160,000 Net income $1,030,000 Additional information: 1. Accounts receivable decreased $350,000 during the year. 2. Prepaid expenses increased $160,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $300,000 during the year. 4. Accrued expenses payable decreased $90,000 during the year. 5. Administrative expenses include depreciation expense of $50,000.…
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The income statement of Vince Gill Company is shown below. Vince Gill CompanyIncome StatementFor the Year Ended December 31, 2020 Sales revenue $6,900,000 Cost of goods sold Beginning inventory $1,900,000 Purchases 4,400,000 Goods available for sale 6,300,000 Ending inventory 1,600,000 Cost of goods sold 4,700,000 Gross profit 2,200,000 Operating expenses Selling expenses 450,000 Administrative expenses 700,000 1,150,000 Net income $1,050,000 Additional information: Accounts receivable decreased $360,000 during the year. Prepaid expenses increased $170,000 during the year. Accounts payable to suppliers of merchandise decreased $275,000 during the year. Accrued expenses payable decreased $100,000 during the year. Administrative expenses include depreciation expense of $60,000. Instructions Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2020, for Vince Gill…
The following data were provided by the accountants of the Home Office and Branch for the year ended December 31, 2016: Home Office Book Branch Book Net sales to outside customer 1,000,000 800,000 300,000 140,000 250,000 Beginning Inventory Net purchases from outside supplier Shipment to branch Shipment from Home Office Ending Inventory Operating expenses 800,000 400,000 500,000 100,000 200,000 200,000 100,000 The current corporate income tax rate is 30%. It is the policy of the company to use specific identification for inventory. For the year ended December 31, 2015, the Home Office bills its branch with a gross profit rate of 40% based on cost. Half of the beginning inventory of the branch was acquired from outside suppliers. The ending inventory of the branch is broken down as follows: 60% from outside suppliers 26% from 2016 shipment from home office 14% from 2015 shipment from home office 13. What is the net income of the branch in its books for the year end December 31, 2016? а.…
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Hanggang Dito Na Lang Company reported the following information for the current year: Sales 575,000Cost of sales 240,000Administrative expenses 70,000Loss on sale of equipment 10,000Sales commission 50,000Interest revenue 25,000Freight out 15,000Loss on early retirement of long-term debt 20,000Uncollectible accounts expense 15,000 The finished goods inventory was P400,000 on January 1 and P360,000 on December 31, 2020. The tax rate is 30%. What amount should be reported as income from continuing operations?