Question 1.1.Erosion Control Products had sales of $150,000, sales returns and allowances of $13,500, and sales discounts of $5,400. They reported cost of goods sold of $90,000 and $30,000 in operating expenses. What was Erosion Control Products gross profit? (Points : 20)

$41,100 $11,100 $78,900 $48,900

Question 2.2.Gross profit percentage is a measure of ________. (Points : 20)

safety profitability liquidity efficiency

Question 3.3.Goods that are shipped FOB Destination indicates that the buyer ________. (Points : 20)

takes ownership of the goods at the delivery destination point takes ownership of the goods at the shipping point is responsible for freight-in on goods purchased from the supplier is responsible for freight-out on goods shipped to customers.

Question 4.4.At the end of the period, the balance in inventory was $30,250. A physical count showed that the actual ending inventory balance was $29,500. What affect did the adjusting entry recorded to adjust ending inventory to actual have on the income statement? (Points : 20)

increased operating expenses decreased operating expenses increased gross profit decreased gross profit

Question 5.5.GregCo had the following account balances:

Sales	$250,000
Cost of Goods Sold	$162,500
Inventory on January 1st, 20X1	$52,000
Inventory on December 1st, 20X1	$45,000

GregCo had an inventory turnover of ________. (Points : 20)

0.35 3.35 3.61 1.68