Question
Coras Computers uses the Periodic Inventory System and has a December 31st year-end. The company began the year with inventory with a cost of $18,600.
Coras Computers uses the Periodic Inventory System and has a December 31st year-end. The company began the year with inventory with a cost of $18,600. When Coras staff counted inventory at December 31, inventory with a cost of $22,500 were on hand. The company also had the following account balances for the year (random order, all with normal balances):
Office Supplies Expense 4,700
Purchases $199,500
Sales Discounts 2,400
Advertising Expense 11,300
Interest Income 2,000
Freight In 16,400
Freight Out 12,200
Sales person Salaries 61,500
Sales Returns and Allowances 10,200
Loss on Sale of PP&E 550
Purchase Returns and Allowances 9,800
Sales Revenue 325,000
Purchase Discounts 1,800
Management Salaries 19,800
Required: 1) Prepare a Multi-Step Income Statement (full detail) for the year-ended December 31, 2020.
2) Calculate: a) Gross Margin % b) Inventory Turnover c) Days in Inventory.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started