MB 80% (4 points each) Net income from operations is gross profit less a financing expenses. b. operating expenses. C. other income and expense. d. other expenses Sales revenue less cost of goods sold is called a gross profit b.net profit. c. net income d. marginal income. ost of goods sold is determined only at the end of the accounting period in a. a perpetual inventory system. b. a periodic inventory system. c. both a perpetual and a periodic inventory system. d. neither a perpetual nor a periodic inventory system. Which of the following expressions is incorrect? a. Gross profit - operating expenses = net income. b. Sales - cost of goods sold-operating expenses = net income * c. Net income + operating expenses = gross profit . d. Operating expenses - cost of goods sold = gross profit 5. The Inventory account is used in each of the following except the entry to record a goods purchased on account. b. the return of goods purchased. C. payment of freight on goods sold. d payment within the discount period. ed merchandise from Beyer Company with freight terms of Hicks Company purchased mercado FOB shipping point. The freight costs will be paid by the a. seller b. buyer c. transportation company d. buyer and the seller. Company on August 8, for $ the appropriate payment to Underwood water Company made a purchase of merchandise on credit from pany on August 8, for $8,000 terms 3/10,n/30. On August 17, Mather makes priate payment to Underwood. The entry on August 17 for Mather Company a. Accounts Payable Cash b. Accounts Payable. Cash 8,000 8.000 7.760 7.760 8,000 c. Accounts Payable Purchase Returns and Allowances Cash d. Accounts Payable..................... 240 7,760 8,000 Inventory Cash 240 7,760 8. Touch Tronix, Inc. sells component parts to Advanced Communications, Inc. a cell phone manufacturer. On December 10, 2017. Touch Tronix, Inc. sold 1.700,000 of goods to Advanced Communications, Inc. on account for 2,200,000. Terms of the sale were 2/10, net 30. On December 18, 2017, Advanced Communications, Inc. paid the account in full. Advanced Communications, Inc. uses a perpetual inventory system. Which of the following is true regarding the impact on the statement of financial position for Advanced Communications, Inc. when the payment is made on December 18, 2017? a. Cash decreased by 1,666,000. b. Inventory decreased by 34,000. c. Accounts payable decreases by 1,700,000 d Inventory decreased by 44,000. Maxwell Company's financial information is presented below. 850,000 Sales Revenue ???? Cost of Goods Sold 450,000 Gross Profit 380982 Sales Returns and Allowances 50,000 Net Sales 780,000 The missing amounts above are: Sales Revenue Gross Profit a. 830,000 330,000 b. 730,000 330,000 c. 830,000 380,000 d. 730,000 380,000 10. Items not yet placed into production are considered to be a. raw materials. b. work in process. c. finished goods. d. merchandise inventory.X 11. In a manufacturing business, inventory that is ready for sale is called a. raw materials inventory. X b. work in process inventory. c. finished goods inventory. d. store supplies inventory. 12. Blosser Company's goods in transit at December 31 include: sales made purchases made (1) FOB destination (3) FOB destination (2) FOB shipping point (4) FOB shipping point Which items should be included in Blosser's inventory at December 31? a. (2) and (3) b. (1) and (4) C. (1) and (3) d. (2) and (4) 13. As a result of a thorough physical inventory. Hastings Company determined that it had inventory worth $620,000 at December 31, 2017. This count did not take into consideration the following facts: Carlin Consignment store currently has goods worth $104,000 on its sales floor that belong to Hastings but are being sold on consignment by Carlin. The selling price of these goods is $150,000. Hastings purchased $40,000 of goods that were shipped on December 27 FOB destination, that will be received by gs on January 3 Determine the correct amount of inventory that Hastings should report # $650.000 . $764,000 $724,000 d. 3770.000 Reiko Company took a physical inventory at December 31, 2016 and determined that 3.730.000 of goods were on hand in addition, the company had goods consigned with Chang Company that had a cost of 700.000 On December 29, Keiko sold and hoped fob shipping point 4600,000 worth of inventory. These goods arrived at the buyers place of business on January 4, 2017. What amount should Keiko report as inventory on its December 31, 2016 statement of financial position? 3.730.000 b. 44 330 000 4,430.000 d. 4.930,000 15 Brocken Co has the following data related to an item of inventory Inventory, May 1 Purchase. May 7 Purchase, May 16 Inventory, May 31 3.000 units @ 4.20 10,500 units @ 4.40 2,100 units @ 4.50 3,900 units The value assigned to cost of goods sold if Brocken uses FIFO is a 50,700 b. 50,880 c51,207 d. 51,246. 16 Kershaw Bookstore had 1,200 units on hand at January 1, costing 18 each. Purchases and sales during the month of January were as follows: Date Purchases Sales Jan. 14 600 @ 20 600 @ 22 600 @ 32 900 @ 28 25200 that are e v ery system and there we 700 Home The an r d ed transactions pertain to Nesley Corporation 150.000 ordinary shares, 10 par value for 22 per share o d 8.000 ordinary shares 10 por value in exchange for special purpose ment Nesley Corporation's ordinary shares has been actively traded on the he exchange at 5 per share the transactions Problems on January 1, 2017 Faily Company issued 30.000 ordinary shares with a s2 par value for 180.000 On March 2017 the company purchased 4.000 ordinary shares for 58 per Share for the treasury On June 2017 1000 of the treasury shares are sold for $10 per whare on September 1, 2017. 2.000 any shares are sold at $0 per share Instructions Journal the share transactions of Farly Company in 2017