MegaLo Mart provides the following information relating to its most recent year of operations. MegaLo Mart charges

Question:

MegaLo Mart provides the following information relating to its most recent year of operations. MegaLo Mart charges off the entire cost of transportation in to the income statement for the period.

Revenues ........................... $14,568,800

Beginning inventory, 1/1 ......... 245,600

Ending inventory, 12/31 .......... 260,400

Purchases ............................ 10,950,325

Transportation in ..................... 102,500

Sales commissions .................. 437,064

Store rent .............................. 1,435,000

Store utilities ............................ 134,675

Other administration .............. 879,345

Required:

Complete a GAAP income statement to determine MegaLo Mart’s profit before taxes.

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =... GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...