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Your uncle Ernie just passed away and left you his lumber yard. The will says that you must operate the lumberyard for at least five
Your uncle Ernie just passed away and left you his lumber yard. The will says that you must operate the lumberyard for at least five years after his death; after the five year period you can sell it or continue to operate it. Going through last year's records you notice that the lumberyard had cash sales of $130,000 and credit card sales of $122,448.98 (for credit card sales you have to pay 2% to the credit card companythis would be a cost of goods sold). Uncle Ernie's lumberyard also received $250,000 in account salesthe lumberyard offers a 10% discount for account customers who pay within 10 days of receiving the bill and all customers took advantage of the discount (the discount is a cost of goods sold). The lumber supplier sent Uncle Ernie mismarked lumber, causing the lumberyard to have $20,000 in customer returns and $5000 in markdowns. The lumberyard paid a total of $200,000 for the merchandise and $25,000 for shipping to obtain goods for sale (this type of shipping is part of cost of goods sold). Last year uncle Ernie paid himself a salary of $1,250 per month and paid his employees a salary of $110,000; in addition
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