2. Comprise a multi-step income statement. Assume Gross Sales = $870,000; Sales Returns and Allowances = $70,000; Sales Discounts = $40,000; Cost of Goods Sold= $389,000; Interest Expense = $15,000; Other Sales and General Administrative Expenses = $150,000; and the Tax Rate is 21%. Be sure to include and state the GP, EBIT, EBT and NI.

6. Please state the two primary sources of financial capital. In addition, state the two subcategories for each.

7. Please provide the journal entries for the following facts:

Your company uses the perpetual method.

Your company purchased 500 items of inventory for $165,000 with the terms of 2/EOM, n/45 on 1/19/19.

#7. Continued. Your company returned $30,000 of faulty inventory on 1/28/19.

Your company paid for the inventory on 1/31/19.

8. Using the facts from #7, please do the three journal entries from Problem #5, but now using the periodic method.

9. Using the facts in Problem #7, please do the journal entry for your company selling 250 items of your inventory for $140,000 with the terms 1/10, n/30 on 2/10/19. Note that the perpetual and the periodic methods use the same account names when selling merchandise.

13. Using the following information calculate the Cost of Goods Sold (COGS) and Ending Inventory (EI) using the FIFO Periodic/Perpetual method.

Beginning Inventory 2,400 units @ $36 each

Jan 5^th Sold 2,000 units

Jan 10^th Purchased 4,000 units @ 40

Jan 15^th Sold 3,500 units

Jan 20^th Purchased 2,000 units @ $45

14. Using the facts from Problem #13, please calculate the COGS and EI using the

LIFO Periodic method.