=+Revenue from sales: Sales . . . . . . . . . . . . .

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=+Revenue from sales:

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,345,800 Add: Sales returns and allowances . . . . . . . . . . . . . . . . $120,000 Sales discounts . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000 180,000 _________ __________ Gross sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,525,800 Cost of merchandise sold . . . . . . . . . . . . . . . . . . . . . 3,100,800 __________ Income from operations . . . . . . . . . . . . . . . . . . . . . . . . . . $2,425,000 Expenses:

Selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 800,000 Administrative expenses . . . . . . . . . . . . . . . . . . . . . . . . 600,000 Delivery expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000 __________ Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,450,000 __________

$ 975,000 Other expense:

Interest revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000 __________ Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 935,000 __________ __________

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Accounting

ISBN: 978-1111001346

23rd Edition

Authors: Carl S. Warren

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