The information corresponding to the adjusted accounts of Spicy Nachos Rest for the year ended June 30, 2015 is as follows:
Sales 690,000
Inventory (July 1, 2014) 43,200
Purchases 562,000
Freight –in 23,500
Purchases returns 9,000
General and Administrative Expenses 86,000
The only adjustments not included in the above information are the adjustment for ending inventory (assuming a periodic inventory system) and income tax.
The inventory as of June 30, 2015, according to a physical count, was valued at $30,800.

Please calculate:
a) Gross Profit
b) Net Profit before income tax

Answer rating: 100% (QA)

T o calculate the gross profit we need to determine the cost of goods sold COGS and subtract it from ... View the full answer