QS- 4-14

Chapter 4 Reporting and Anslyzing Merchandising Operations QS 4-14 Computing and analyzing gross margin ratio Compute net sales, gross profit, and the gross margin ratio for each of the four separate companies. Interpret the gross margin ratio for Carrier. 38,700 $255,700 4.800 Sales discounts Sales returns and allowances Cost of goods sold $150,000 5,000 20,000 79,750 17,500 6.000 5.100 QS 4-15 Income statement information for adidas Group, a German footwear, apparel, and accessories Mutiple- and single-step manufacturer, for the year ended December 31, 2016, follows (in millions). Prepare its calendar-year 2016 (1) multiple-step income statement and (2) single-step income statement income statement presentation P4 Income before taxes... Net iscome Fisancial income 1,020 Gross peofit Royaity and commission income 1.445 9,379 109 1.491 9,912 425 Operating proft Other operating income Other operating expenses Income ta Identify whether each description best applies to a periodic or a perpetual inventory system QS 4-16 Contrasting periodic and perpetual systems a. Updates the inventory account only at period-end. b. Requires an adjusting entry to record inventory shrinkage c. Markedly increased in frequency and popularity in business within the past decade. time a sales transaction occurs