Question
Kumakari is a small furniture store. it has annual sales of $1,600,000. Beginning of year inventory (at cost) equals $360,000 ending inventory (at cost) is
Kumakari is a small furniture store. it has annual sales of $1,600,000. Beginning of year inventory (at cost) equals $360,000 ending inventory (at cost) is $320,000. The yearly purchases are $800,000 and Transportation charges are $6,000. This resulted in a cost of goods sold of $846,000. Over the year the store paid out $420,000 in salaries & commission and spent $75,000 on advertising. Insurance cost $5,000 assets of $1,600,000; while it had current liabilities of $720 and fixed liabilities of $960,000. 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? What were their (e) total assets, (f) total liabilities, (g) net worth, and (h) liabilities and net worth: afterwards calculate Kumakura's (i) net profit margin, (j) return on assets, (k) asset turnover, (l) financial leverage, and (m) return on net worth. (you must show work to receive any credit)
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