Question: I have the solution.. I just do not know how they came up with some of the answers. e.g. sales return and allowande. Exercise 5-11
I have the solution.. I just do not know how they came up with some of the answers. e.g. sales return and allowande. Exercise 5-11
Calculating income statement components L01,5
Referring to Exhibit 5.15 calculate the missing amounts (round to two decimal places).
Company A Company B
2020 2019 2020 2019
Sales $263,000.00 $187,000.00 ? 114200.00 $48,500.00
Sales Discount $2,630.00 ? 1350.00 $1,200.00 $570.00
Sales Return and Allowance ? 51570 $16,700.00 $6,200.00 ? 2430.00
Net Sales ? 208800.00 $168,950.00 ? 106800.00 $45,500.00
Cost of Goods Sold $157,100.00 ? 106450 $57,700.00 ? 23400.00
Gross Profit from Sales $51,700.00 ? 62500.00 $49,100.00 $22,100.00
Selling Expense $18,620.00 $19,700.00 $25,700.00 ? 9700.00
Administrative Expenses $26,300.00 ? 27700.00 $30,400.00 $9,700.00
Total Operating Expenses ? 44920.00 $47,400.00 ? 56100.00 ? 0
Profit (Loss) ? 6780.00 $15,100.00 ? (7000) $2,700.00
Gross Profit Ration ? 24.76 ? 36.99 ? 45.67 ? 48.57
Solve for ?
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