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)
Step by Step Answer:
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain