1.Financial information is presented below:

Operating expenses	$ 49000
Sales returns and allowances	9000
Sales discounts	2000
Sales revenue	204000
Cost of goods sold	99000

The amount of net sales on the income statement would be

$204000.

$202000.

$195000.

$193000.

2.

Assume Novak Corp. uses the periodic inventory system and has a beginning inventory balance of $5800, purchases of $76000, and sales of $116000. Novak closes its records once a year on December 31. In the accounting records, the inventory account would be expected to have a balance on December 31 prior to adjusting and closing entries that was

indeterminate.

equal to $5800.

less than $5800.

more than $5800.

3.

Metlock, Inc. accounting records show the following for the year ending on December 31, 2022.

Purchase Discounts	$ 13400
Freight-in	15400
Purchases	716020
Beginning Inventory	55000
Ending Inventory	46600
Purchase Returns and Allowances	12500

Using the periodic system, the cost of goods purchased is

$726520.

$730520.

$674320.

$705520.

4.

Marigold Corp. accounting records show the following at the year ending on December 31, 2022.

Purchase Discounts	$ 13200
Freight-in	14600
Purchases	685020
Beginning Inventory	54000
Ending Inventory	46600
Purchase Returns and Allowances	13300

Using the periodic system, the cost of goods sold is

$705720.

$680520.

$697320.

$718520.

5.

Bolton Company's gross profit rate last year was 32.0% and this year it is 28.4%. Which of the following would not be a possible cause for this decline in the gross profit rate?

Bolton must pay higher prices to suppliers without passing these costs on to customers.

Bolton's average margin between selling price and inventory cost is decreasing.

Bolton may have begun selling products with a higher markup.

Bolton may have seen a decline in total gross profit while maintaining net sales.