The Apollo Company is a catalogue-based retailer. The following describes Apollo's operations:

	Year 1	Year 2
Sales (all on account)	$600,000	$900,000
Cash collections from customers
On Year 1 sales	270,000	330,000
On Year 2 sales	-	360,000
Cash purchases of merchandise inventory	540,000	720,000
Merchandise inventory-on-hand (year-end)	180,000	342,000
Operating expenses (other than inventory)	96,000	132,000

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Required 1. Prepare an income statement for each year assuming that Apollo recognizes revenue using the point-of-sale method and assuming that all operating expenses are paid in cash. Enter all numbers as positive numbers. Year 1 Year 2 Revenues 2$ $ Less: Cost of goods sold Beg. Inventory Beg. Inventory Less: End. Inventory Cost of Goods Sold Gross margin Less: Operating expenses Net income 24 2. Prepare an income statement for each year assuming that Apollo recognizes revenue using the installment method and assuming that all operating expenses are paid in cash. Enter all numbers as positive numbers. Year 1 Year 2 Revenues 0 $ Less: Cost of goods sold Gross margin Beg. Inventory Net income $ $ Please answer all parts of the question. oㅇㅇ|0ㅇㅇ|0 ㅇㅇㅇ ㅇㅇㅇ| ㅇㅇ|0 ㅇㅇㅇ Required 1. Prepare an income statement for each year assuming that Apollo recognizes revenue using the point-of-sale method and assuming that all operating expenses are paid in cash. Enter all numbers as positive numbers. Year 1 Year 2 Revenues 2$ $ Less: Cost of goods sold Beg. Inventory Beg. Inventory Less: End. Inventory Cost of Goods Sold Gross margin Less: Operating expenses Net income 24 2. Prepare an income statement for each year assuming that Apollo recognizes revenue using the installment method and assuming that all operating expenses are paid in cash. Enter all numbers as positive numbers. Year 1 Year 2 Revenues 0 $ Less: Cost of goods sold Gross margin Beg. Inventory Net income $ $ Please answer all parts of the question. oㅇㅇ|0ㅇㅇ|0 ㅇㅇㅇ ㅇㅇㅇ| ㅇㅇ|0 ㅇㅇㅇ

Answer rating: 100% (QA)

Req1 Recognise Revenue Using Point Of Sale Method Year 1 Y... View the full answer