Question
The following information concerning Harry's Hat's applies to all six questions. Harry's Hat Shop is a store that sells baseball caps with sports team logos.
The following information concerning Harry's Hat's applies to all six questions.
"Harry's Hat Shop" is a store that sells baseball caps with sports team logos. "Harry's Hat Shop" pays its supplier (located in Korea) $5 per cap. The store sells the caps to retail customers in Toronto for $10 each. During the fiscal year 2014 Harry's Hat Shop sold the following:
Maple Leafs caps 30,000
Montreal Canadiens caps 25,000
Raptors caps 15,000
Blue Jays caps 15,000
Toronto FC caps 10,000
Argonaut caps 5,000
The store paid $2,500 per MONTH in rent, and $70,000 to the four part-time staff who work in the store. In addition Harry's Hat's spent $25,000 per year in advertising and $15,000 on a booth and promotional activities at Toronto's annual "Fanpalooza" sports memorabilia show. The business pays $20,000 per year to its part-time bookkeeper and accountant. All other expenses, which consisted of utilities, insurance, and day-to-day consumables and supplies, cost $40,000. There are no other revenues or expenses, and there is no other relevant financial information.
1. From the information given, calculate Harry's Hat Shop's revenues for 2014.
2. Based on the information given, what was Harry's Hat Shops cost of goods sold for 2014?
3. Based on the information given, calculate Harry's Hat Shop's gross profit for 2014.
4. Based on the information given, calculate Harry's Hat Shop's operating expenses for 2014.
5. Calculate Harry's Hat Shop's operating profit for 2014.
6. Calculate Harry's Hat Shop's pre-tax profit.
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