Question: EXERCISE 6 . 1 3 Income Statement Calculations and Interpretation LO 6 - 5 , L 0 6 - 6 Page 2 7 4 Mountain

EXERCISE 6.13 Income Statement Calculations and Interpretation
LO6-5,
L06-6
Page 274
Mountain Mabel's is a small general store located just outside of Yellowstone National Park. On January 1, the inventory balance was $6,240, and the inventory balance on December 31 was $4,560. Sales were $150,000 during the prior year, and purchases were $74,400.
a. Compute the cost of goods sold for the year.
b. Calculat be gross profit and the gross profit percentage for the year.
c. Does the gross profit percentage you have calculated mean that the company has a net income for the year?
EXERCISE 6 . 1 3 Income Statement Calculations

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