You have obtained the following data for Lindsey Garns Company. Sales . . . . . .

Question:

You have obtained the following data for Lindsey Garns Company.

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $500,000

Gross profit (as a percentage of sales) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25%

Return on sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10%

Operating expenses (as a percentage of sales) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12%

Based on the above data, determine the following:

1. Cost of goods sold

2. Net income

3. Operating expenses

4. Income taxes (assume there are no other expenses or revenues)


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Accounting concepts and applications

ISBN: 978-0538745482

11th Edition

Authors: Albrecht Stice, Stice Swain

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