50. Set up a final profit and loss statement using the following figures. Inward freight $3,000...

 

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50. Set up a final profit and loss statement using the following figures. Inward freight $3,000 Workroom and alteration charges 600 Opening inventory (at cost) 14,400 Closing inventory (at cost) 14,600 Customer returns 8,000 Gross sales 82,000 Purchases (at cost) 35,000 Promotional expense 3,500 Rent and utilities 10,000 Payroll 15,500 Miscellaneous expenses 2,000 Cash discounts 3% Express results in dollar amounts and as a percentage for: (a) Net profit or loss. (b) Cost of goods sold. (c) Gross margin. (d) Operating expenses. Then, analyze the above figures. Discuss the relationship of expenses to net profit and the size of the gross margin. Suggest strategies to improve profit. 50. Set up a final profit and loss statement using the following figures. Inward freight $3,000 Workroom and alteration charges 600 Opening inventory (at cost) 14,400 Closing inventory (at cost) 14,600 Customer returns 8,000 Gross sales 82,000 Purchases (at cost) 35,000 Promotional expense 3,500 Rent and utilities 10,000 Payroll 15,500 Miscellaneous expenses 2,000 Cash discounts 3% Express results in dollar amounts and as a percentage for: (a) Net profit or loss. (b) Cost of goods sold. (c) Gross margin. (d) Operating expenses. Then, analyze the above figures. Discuss the relationship of expenses to net profit and the size of the gross margin. Suggest strategies to improve profit.

Answer rating: 100% (QA)

a Net Profit or Loss Gross Sales 82000 Less Inward freight 3000 Net Sales 79000 Less Customer returns 8000 Net sales after returns 71000 Less Cost of ... View the full answer