Question
30 points Kumakari is a small furniture store. It has annual sales of $2,000,000. Beginning-of-year inventory (at cost) equals $375,000; ending inventory (at cost)
30 points Kumakari is a small furniture store. It has annual sales of $2,000,000. Beginning-of-year inventory (at cost) equals $375,000; ending inventory (at cost) is $325,000. The yearly purchases are $750,000 and transportation charges are $5,000. This resulted in a cost of goods sold of $805,000. Over the year the store paid out $500,000 in salaries & commission and spent $125,000 on advertising, insurance cost $15,000, maintenance cost $60,000, while other operating expenses came to $15,000 for the year. Kumakari also paid $52,800 in interest and $52,550 in taxes. At years end the store current assets of $800,000 and fixed assets of $1,800,000; while it had current liabilities of $720,000 and fixed liabilities of $1,080,000. Saved Refer to Kumakari Furniture scenario, what was the (a) gross profit, (b) total operating expenses, (c) net profit before taxes, (d) net profits after taxes? Then what were their (e) total assets, (f) total liabilities, (g) net worth, and (h) liabilities and net worth? Afterwards calculate Kumakari's (i) net profit margin, (i) return on assets, (k) asset turnover, (1) financial leverage, and (m) return on net worth. (You must show work to receive any credit)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started