Ruby operates a hobby supply store. She maintains her books using the cash method. At the end
Question:
Ruby operates a hobby supply store. She maintains her books using the cash method. At the end of the year, her accountant computes her accrual basis income that is used on her tax return.
For 2015, Ruby had cash receipts of $840,000, which included $100,000 collected on accounts receivable from 2014 sales. It also included the proceeds of a $50,000 bank loan. At the end of 2015, she had $175,000 in accounts receivable from customers, all from 2015 sales. Ruby paid cash for all of the purchases. The total amount she paid for merchandise in 2014 was $560,000. At the end of 2014, she had merchandise on hand with a cost of $45,000. At the end of 2015, the cost of merchandise on hand was $80,000.
Ruby's accrual basis gross receipts for 2015 are $ .
The cost of goods sold for 2015 under the accrual method is $ .
The gross profit from merchandise sales for 2015 under the accrual basis is $ .
South Western Federal Taxation 2016 Comprehensive
ISBN: 9781305395114
39th edition
Authors: James H. Boyd, William H. Jr. Hoffman, David M. Maloney, William A. Raabe, James C. Young