If a merchandising company ends a period with a larger inventory than it owned at the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
If a merchandising company ends a period with a larger inventory than it owned at the beginning of the period, then: A) The cost of goods sold was larger than net purchases. B) Net income was larger than gross profit. C) The cost of goods sold was smaller than net purchases. D) The cost of goods available for sale was smaller than the cost of goods sold. E) Gross profit was larger than the cost of goods sold. If a merchandising company ends a period with a larger inventory than it owned at the beginning of the period, then: A) The cost of goods sold was larger than net purchases. B) Net income was larger than gross profit. C) The cost of goods sold was smaller than net purchases. D) The cost of goods available for sale was smaller than the cost of goods sold. E) Gross profit was larger than the cost of goods sold.
Expert Answer:
Answer rating: 100% (QA)
B Net income was larger than gross profit Net profit reflects the amount of money you are left with ... View the full answer
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
Students also viewed these accounting questions
-
A company's cost of goods sold was $5,400. Determine net purchases and ending inventory given goods available for sale were $13,100 and beginning inventory was $6,400.
-
9. In three separate site-directed mutagenesis experiments, scientists altered a Lys residue in corn PEP carboxylase to an Asn, Glu, or Arg. Which substitution would you expect to have the least...
-
The Durn Company began operations at the beginning of 2007. At the end of 2007 the company reported taxable income of $9,800 and pretax financial income of $11,200, because of a single temporary...
-
What is t he principle of motor?
-
Using the indirect method, calculate the cash inflow or outflow from operating activities, using the followinginformation: Denman Inc. Comparative Balance Sheet Informationn December 31 2014 2013 $...
-
A mutation that creates a stop codon in the middle of a protein-coding sequence is (a) a nonsense mutation. (b) a frameshift mutation. (c) both a nonsense and a frameshift mutation. (d) neither a...
-
A petrol engine with compression ratio of 5 develops \(20 \mathrm{~kW}\) indicated power and consumes 8 litres of fuel per hour. The specific gravity of fuel is 0.78 and its calorific value is \(44...
-
The Scampini Supplies Company recently purchased a new delivery truck. The new truck cost $22,500, and it is expected to generate net after-tax operating cash flows, including depreciation, of $6,250...
-
An electron travels in a circle perpendicular to a magnetic field. (Recall m = 9.1x10 -31 kg and qe = 1.6x10 -19 C.) The speed of the electron is 200m/s and the radius of the circle is 0.1m....
-
You have recently been promoted to be director of advertising for the Timkin Tool Company. In your first meeting with Mr. Timkin, he says, Advertising is a waste! Weve been advertising for six months...
-
6. A typical heat pump may heat a home at a rate of 40,000 Btu/hr. If a heat pump has a coefficient of performance of 3.6, how much power does it need to run, in hp? According to Delmarva Power, the...
-
Which tool can be helpful in deciding whether an RDS database or one run on an EC 2 instance will be a better choice for your AWS deployment?
-
A transfers $50,000 cash in exchange for 50 shares of NewCo stock.B transfers investment land with a basis of $10,000 and a FMV of $50,000 in exchange for 40 shares of NewCo stock and $10,000 cash....
-
What does the following Java code do ? public Object function ( ) { if ( isEmpty ( ) ) return - 9 9 9 ;else { Object high;high = q [ front ] ;return high; } }
-
Name the legislations which underpin workplace and organisation policies and some procedures. ? Explain
-
Consider the following $ 1 , 0 0 0 face value bond which makes semi - annual coupon payments. Rema Bond CIBC 9 . 5 % Coupon rate Price 1 0 7 . 8 4 Maturity June 1 , 2 0 3 0 Settlement Date January 6...
-
Stacie, who has a mass of 45 kg, starts down a slide that is inclined at an angle of 45 0 with the horizontal. If the coefficient of kinetic friction between Stacie's shorts and the slide is 0.25,...
-
Derive Eq. (18.33) from Eq. (18.32).
-
Preparing the statement of cash flows Pushing Daisies Homes had the following cash transactions for the month ended July 31, 2016. Cash receipts: Collections from customers.....$ 24,000 Issued common...
-
At September 30, 2016, the accounts of Park Terrace Medical Center (PTMC) include the following: Accounts Receivable...............$ 143,000 Allowance for Bad Debts (credit balance)...... 3,300...
-
Selected accounts for Kennedy Photography at December 31, 2016, follow: Requirements 1. Journalize Kennedy Photographys closing entries at December 31, 2016. 2. Determine Kennedy Photographys ending...
-
When you were playing the employees role, how did the managers suggestions make you feel?
-
Which of the three quarters exhibited the most consistent increase in value for this security?
-
What was the mean price of the security on the first of January 2004?
Study smarter with the SolutionInn App