121.Brig Company had $800,000 in sales, sales discounts of $12,000, sales returns and allowances of $18,000, cost of goods sold of $380,000, and $275,000 in operating expenses. Gross profit equals:

A.$770,000.

B.$115,000.

C.$390,000.

D.$402,000.

E.$408,000.

122.Brig Company had $800,000 in sales, sales discounts of $12,000, sales returns and allowances of $18,000, cost of goods sold of $380,000, and $275,000 in operating expenses. Net income equals:

A.$770,000.

B.$402,000.

C.$390,000.

D.$115,000.

E.$408,000.

123.A company purchased $10,000 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it returned $800 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. The cash paid on June 24 equals:

A.$8,924.

B.$9,700.

C.$10,000.

D.$9,800.

E.$8,724.

124.A company purchased $10,000 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. The freight charge was $500. On June 20, it returned $800 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. The cash paid on June 24 equals:

A.$9,224.

B.$10,200.

C.$10,500.

D.$10,300.

E.$9,424.

125.A company's current assets are $23,420, its quick assets were $13,890 and its current liabilities were $12,220. Its acid-test ratio equals:

A.0.88.

B.1.91.

C.1.14.

D..52.

E.1.41.

126.Using the following year-end information for Brim, LLC, calculate the current ratio and acid-test ratio:

A.3.01 and 1.21

B.3.16 and .97

C.3.04 and 1.21

D.1.09 and 4.77

E.None of these

127.A company's net sales are $775,420, its costs of goods sold are $413,890, and its net income is $117,220. Its gross margin ratio equals:

A.46.6%.

B.53.4%.

C.28.3%.

D.31.5%.

E.40.5%.

128.All of the following statements related to U.S. GAAP and IFRS are true except:

A.Accounting for basic inventory transactions is the same under the two systems.

B.The closing process for merchandisers is the same under both systems.

C.U.S. GAAP offers little guidance about the presentation order of expenses.

D.Neither system requires separate disclosure of items when their size, nature, or frequency are important for proper interpretation.

E.Neither system defines operating income.

129.A company purchases merchandise with a catalog price of $20,000. The company receives a 35% trade discount from the seller. The seller also offers credit terms of 2/10, n/30. Assuming no returns were made and that payment was made on time, what is the net cost of the merchandise?

A.$13,720.

B.$19,600.

C.$6,860.

D.$13,000.

E.$12,740.

130.A company has net sales and cost of goods sold of $825,000 and $547,000, respectively. Its net income is $98,500. The company's gross margin and operating expenses are ________ and ___________, respectively.

A.$209,000; $191,470

B.$278,000; $179,500

C.$278,000; $98,500

D.$179,500; $98,500

E.$645,500; $179,500