Question

Complete the skeletal profit and loss statement below, using the following figures:

Gross sales                                          $234,000

Customer returns                                    18,000

Billed cost of goods                                100,000

Inward freight                                            2,000

Opening inventory                                   90,000

Closing inventory                                     80,000

Alterations charges                                       500         

Cash discounts                                                  4%

Advertising                                                 6,000

Salaries                                                    55,000

Occupancy expenses                               21,000

Miscellaneous expenses                            2,000

	$	%
Net Sales
Cost of Merchandise Sold
Gross Margin
Operating Expenses
Profit/Loss

Please show the work. I know the answers just can't figure out how to get there. Thank you!

Answer 1

Gross sales	$ 2,34,000.00
Less: Customer returns	$    18,000.00
Net Sales		$         2,16,000.00
Less: Cost of Merchandise Sold
Opening inventory	$    90,000.00
Add: Billed cost of goods	$ 1,00,000.00
Add: Inward Flight	$      2,000.00
Add: Alterations charges	$         500.00
Less: Cash Discount ($100,000 x 4%)	$      4,000.00
Less: Closing Inventory	$    80,000.00
Net Cost of Merchandise sold		$         1,08,500.00
Gross Margin		$         1,07,500.00
Less: Operating Expenses:
Advertising	$      6,000.00
Salaries	$    55,000.00
Occupancy expenses	$    21,000.00
Miscellaneous expenses	$      2,000.00
Total Operating Expenses		$            84,000.00
Profit/Loss		$            23,500.00