Principles of Financial Accounting

Tim's Food Store

March $312010$

Sales retums :

Additional information

a$.$ Ending Inventory $44600$

b$.$ The building is being depreciated over $25$ years useful life.

c$.$ Depreciation for the furniture is $$2000$ per annum

d$.$ $$500$ worth of supplies were used during the year

e$.$ Insurance expense was $$1200$ during the year

From the information above prepare the income Statement for Tim's Food Store at March

$312010$ showing the following $12$ marks

a$.$ Cost of goods sold

b$.$ Gross profit

c$.$ Total expenses

d$.$ Net profit

e$.$ Calculate the profit as a percentage of sales

f$.$ Calculate the rate of stock turnoveris beginning inventory same as merchandise inventory