On January 1, 2017, Scott Enterprises, Ltd. had inventory of 50,000. At December 31, 2017, Scott had

Question:

On January 1, 2017, Scott Enterprises, Ltd. had inventory of £50,000. At December 31, 2017, Scott had the following account balances.
Freight-in.................................£ 4,000
Purchases.................................509,000
Purchase discounts........................6,000
Purchase returns and allowances.........8,000
Sales revenue............................840,000
Sales discounts.............................7,000
Sales returns and allowances............11,000
At December 31, 2017, Scott determines that its is £60,000.
Instructions
(a) Compute Scott's 2017 gross profit.
(b) Compute Scott's 2017 operating expenses if net income is £130,000 and there are no non-operating 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 =...