Question
Merchandisers Income Statement Puzzler Using the following information, calculate (a) net sales, (b) cost of goods sold, (c) gross margin from sales, and (d) net
Merchandisers Income Statement Puzzler
Using the following information, calculate (a) net sales, (b) cost of goods sold, (c) gross margin from sales, and (d) net income.
Freight In
$ 400
Merchandise Inventory, Jan.1
30,000
Gross Sales
120,000
Purchase Discounts
600
Advertising Expense
8,000
Purchases
40,000
Merchandise Inventory, Dec.31
10,000
Sales Returns and Allowances
1,000
General and Administrative Expenses
14,000
Net Sales a. ____________________
Cost of Goods Sold b. ____________________
Gross Margin from Sales c. ____________________
Net Income d. ____________________
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