During 2010, Vaughn Corporation sold merchandise costing $1,500,000 on an installment basis for $2,000,000. The cash receipts related to these sales were collected as follows: 2010, $800,000; 2011, $700,000; 2012, $500,000.

96. What is the rate of gross profit on the installment sales made by Vaughn Corporation during 2010?

  

97. If expenses, other than the cost of the merchandise sold, related to the 2010 installment sales amounted to $90,000, by what amount would Vaughns net income for 2010 increase as a result of installment sales?

  

98. What amount would be shown in the December 31, 2011 financial statement for realized gross profit on 2010 installment sales, and deferred gross profit on 2010 installment sales, respectively?

  

  

During 2010, Martin Corporation sold merchandise costing $2,100,000 on an installment basis for $3,000,000. The cash receipts related to these sales were collected as follows: 2010, $1,200,000; 2011, $1,050,000; 2012, $750,000.

99. What is the rate of gross profit on the installment sales made by Martin Corporation during 2010?

  

100.If expenses, other than the cost of the merchandise sold, related to the 2010 installment sales amounted to $120,000, by what amount would Martins net income for 2010 increase as a result of installment sales?

 

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