A company's gross profit rate is computed by: dividing net sales by gross profit. subtracting gross profit from net sales. subtracting cost of goods sold from net sales. dividing gross profit by net sales. QUESTION 14 A service company's net income can be expected to increase in which of the following scenarios involving an overall shortening of the operating cycle? inventory cost savings are generated from decreasing the inventory turnover rate gross profit rate improvements due to less average number of days to sell inventory net sales increases due to less average number of days to collect accounts receivable Onone of the above QUESTION 15 A merchandiser will earn a gross profit of exactly $0 when? net sales equals cost of goods sold cost of goods sold equals total operating expenses total operating expenses equal net sales gross profit equals total operating expenses QUESTION 16 A merchandiser will earn an operating income of exactly $0 when? net sales equals cost of goods sold cost of goods sold equals gross profit ototal operating expenses equal net sales gross profit equals total operating expenses QUESTION 17 At the beginning of the current year, Midway Hardware has an inventory of $400,000. Because sales growth is forecast to be strong during the current year, the owner wants to increase inventory on hand to $450,000 by the end of the current year. If net sales for the current year are expected to be $1,600,000, and the gross profit rate is expected the owner should expect to purchase during the current year. o be 35%, compute the cost of the merchandise QUESTION 18 At the end of last year, Helen's, Inc.(uses a periodic inventory system with a physical inventory count taken only at year-end) had merchandise costing $115,000 in inventory. During January of the current year, the company purchased merchandise costing $35,000, and sold merchandise which it had purchased at a total cost of $55,000. Based on the foregoing,the amount of costs transferred from the inventory account cost of goods sold account during January was: ti QUESTION 19 At the end c last year, Helen S d merchandice.cocting $35 000 and sold merchandise which it had purchaced at a total cost of $55.000, Based on the for nve lance in the of the foregoing, ourcl account at lanuary 31 was: ory QUESTION 20 At the end of last year, Helen's, Inc.(uses a periodic inventory system with a physical inventory count taken only at year-end) had merchandise costing $115,000 in inventory. During January of the current year, the company purchased merchandise costing $35,000, and sold merchandise which it had purchased at a total cost of $55,000. Based on the foregoing,the total debited to the inventory account during January was: QUESTION 21 At the end of last year, Helen's, Inc.(uses a perpetual inventory system) had merchandise costing $115,000 in inventory. During January of the current year, the company purchased merchandise costing $35,000, and sold merchandise which it had purchased at a total cost of $55,000. Based on the foregoing,the amount of costs transferred from the Inventory account to the Cost of Goods. Sold account during January was