On January 1, 2012, Evangeline Lilly Corporation had merchandise inventory of $50,000. At December 31, 2012, Evangeline

Question:

On January 1, 2012, Evangeline Lilly had merchandise inventory of $50,000. At December 31, 2012, Evangeline Lilly had the following account balances.
Freight-in............. $ 4,000
Purchases............. 509,000
Purchase discounts........ 6,000
Purchase returns and allowances.... 2,000
Sales revenue.......... 840,000
Sales discounts.......... 5,000
Sales returns and allowances.... 10,000
At December 31, 2012, Evangeline Lilly determines that its is $60,000.
Instructions
(a) Compute Evangeline Lilly’s 2012 gross profit.
(b) Compute Evangeline Lilly’s 2012 operating expenses if net income is $130,000 and there are no nonoperating activities.

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 =... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...