Freight Terms Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. If required, round the answers to the nearest dollar. Returns and Allowances (Invoice Amount) Merchandise (Invoice Amount) Freight Paid by Seller Freight Terms a. $8,550 $600 $1,650 FOB destination, 2/10, n/30 FOB shipping point, 1/10, n/30 b. 3,600 100 700 a. $ b. $ Asset turnover ratio Financial statement data for years ended December 31, 2013 and 20Y2, for Edison Company follow: 20Y3 2012 Sales $2,415,000 $2,073,500 Total assets: Beginning of year End of year 770,000 660,000 840,000 770,000 a. Determine the asset turnover ratio for 20Y3 and 20Y2. Round answers to one decimal place. 20Y3 2012 Asset turnover b. Is the change in the asset turnover ratio from 2012 to 2013 favorable or unfavorable? Favorable Determining Gross Profit During the current year, merchandise is sold for $699,000. The cost of the goods sold is $447,360. a. What is the amount of the gross profit? 251,640 $ b. Compute the gross profit percentage (gross profit divided by sales). || X % c. Will the income statement always report a operating income? No Feedback Check My Work (a) The difference between the selling price of merchandise sold and the cost of the inventory sold is gross profit. (b) Divide the gross profit by sales. (c) Recall that net income is revenue (sales) less all expenses, including the cost of merchandise sold