Ch 18 questions 1-10

Name HOMEWORK ASSIGNMENT: CHAPTER 18 Class Unit 18.1 Income statements ANSWERS 1. A business has a net loss when revenues exceed expenses. (T or F) 1. 2. An income statement reflects profit over a given period of time. (T 2. or F 3. 3. Real estate appraiser Classify each business as either a service company or a merchandising company: (a) real estate appraiser, (b) grocery Grocery store store, (c) tire manufacturer, and (d) accountant. For Problems 4-6, fill in the missing amounts. Each problem Tire manufacturer represents a different situation. Negative values are in parentheses. Accountant 4. 5. 6. 4. Revenues $130,200 $140,000 5. Total expenses $44,000 $54,000 6. Net income (or loss) ($20,000) $12,000 7 . 7. Calculate net sales based on gross sales of $685,000; sales returns 8 . of $7,200; and sales discounts of $12,300. 9 . 10. 8. Calculate cost of goods sold based on $78,300 beginning inventory; $258,000 cost of goods purchased; and $91,200 ending 11. owned inventory. 12. Thic 9. Refer to Problems 7 and 8. Calculate gross profit. 13 . False 14 . invetory 10. Refer to Problem 9. Calculate net income based on operating 15 . accounts payable expenses of $347,800. 16 . retained earnings