On January 1, 2019, Christel Madan Corporation had inventory of $50,000. At December 31, 2019, Christel Madan

Question:

On January 1, 2019, Christel Madan had inventory of $50,000. At December 31, 2019, Christel Madan had the following account balances.
Freight-in.................................$ 4,000
Purchases.................................509,000
Purchase discounts........................6,000
Purchase returns and allowances.........2,000
Sales revenue............................840,000
Sales discounts.............................5,000
Sales returns and allowances............10,000
At December 31, 2019, Christel Madan determines that its is $60,000.
Instructions
(a) Compute Christel Madan's 2019 gross profit.
(b) Compute Christel Madan's 2019 operating expenses if net income is $130,000 and there are no non-operating activities.
Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...