Royal Gorge Company uses the gross profit method to estimate
ending inventory and cost of goods...
Royal Gorge Company uses the gross profit method to estimate
ending inventory and cost of goods sold when preparing monthly
financial statements required by its bank. Inventory on hand at the
end of October was $59,900. The following information for the month
of November was available from company records: Purchases $ 124,000
Freight-in 4,400 Sales 250,000 Sales returns 19,000 Purchases
returns 5,500 In addition, the controller is aware of $6,500 of
inventory that was stolen during November from one of...
LOGIC COMPANY
Comparative Income Statement
For Years Ended December 31, 2016 and 2017
2017
2016
Gross...
LOGIC COMPANY
Comparative Income Statement
For Years Ended December 31, 2016 and 2017
2017
2016
Gross sales
$
19,000
$
15,000
Sales returns and
allowances
1,000
100
Net sales
$
18,000
$
14,900
Cost of merchandise (goods)
sold
12,000
9,000
Gross profit
$
6,000
$
5,900
Operating expenses:
Depreciation
$
700
$
600
Selling and administrative
2,200
2,000
Research
550
500
Miscellaneous
360
300
Total operating expenses
$
3,810
$
3,400
Income before interest and
taxes
$
2,190
$
2,500...
Calculating Gross Profit Percentage Given Estimated
Inventory
The following information is available for Fox Inc. for...
Calculating Gross Profit Percentage Given Estimated
Inventory
The following information is available for Fox Inc. for its
first quarter of 2020.
Cost of goods available for sale. $352,000
Net sales $434,000
Ending inventory estimated using the gross profit method
$60,800
a. Determine cost of goods sold for the first quarter
of 2020. $______
b.Determine gross profit percentage used to estimate ending
inventory. $________
Note: Round to the nearest whole percentage (for
example, enter 20 for 20.44%).
Note: Round amount to...
INCOME STATEMENT:
2016
2017
Sales
$100,000.00
$120,300.00
Cost of Goods Sold
$60,000.00
$72,180.00
Gross Margin
$40,000.00...
INCOME STATEMENT:
2016
2017
Sales
$100,000.00
$120,300.00
Cost of Goods Sold
$60,000.00
$72,180.00
Gross Margin
$40,000.00
$48,120.00
Depreciation
$16,000.00
$19,200.00
Administrative Costs
$9,000.00
$10,800.00
EBIT
$15,000.00
$18,120.00
Interest
$4,000.00
$4,000.00
Pre-tax income
$11,000.00
$14,120.00
Taxes
$4,400.00
$5,648.00
Net Income
$6,600.00
$8,472.00
Dividends
$0.00
$5,083.20
Addition to Retained Earnings
$6,600.00
$3,388.80
BALANCE SHEET AS OF 12/31/2017:
ASSETS
2016
2017
Cash
$5,000.00
$6,000.00
Inventory
$15,000.00
$18,000.00
Accounts Receivable
$15,000.00
$18,045.00
Current Assets
$35,000.00
$42,045.00
Net PPE
$80,000.00
$92,000.00
Total Assets (TA)
$115,000.00...
Using the Gross profit method, compute estimated inventory loss
based on the following information:
Sales: 660,000...
Using the Gross profit method, compute estimated inventory loss
based on the following information:
Sales: 660,000
Purchases: 425,000
Freight in: 25,000
Beginning Inventory: 130,000
Gross Margin%: 30%
Henderson Company uses the gross profit method to estimate
ending inventory and cost of goods sold...
Henderson Company uses the gross profit method to estimate
ending inventory and cost of goods sold when preparing monthly
financial statements required by its bank. Inventory on hand at the
end of July was $122,000. The following information for the month
of August was available from company records: Purchases $ 218,000
Freight-in 5,100 Sales 349,000 Sales returns 8,900 Purchases
returns 4,200 In addition, the controller is aware of $12,000 of
inventory that was stolen during August from one of the...
Henderson Company uses the gross profit method to estimate
ending inventory and cost of goods sold...
Henderson Company uses the gross profit method to estimate
ending inventory and cost of goods sold when preparing monthly
financial statements required by its bank. Inventory on hand at the
end of July was $123,500.
The following information for the month of August was available
from company records:
Purchases $ 221,000
Freight-in 5,400
Sales 352,000
Sales returns 9,200
Purchases returns 4,500
In addition, the controller is aware of $12,000 of inventory
that was stolen during August from one of the...
Royal Gorge Company uses the gross profit method to estimate
ending inventory and cost of goods...
Royal Gorge Company uses the gross profit method to estimate
ending inventory and cost of goods sold when preparing monthly
financial statements required by its bank. Inventory on hand at the
end of October was $59,500. The following information for the month
of November was available from company records:
Purchases
$
120,000
Freight-in
4,000
Sales
230,000
Sales returns
10,000
Purchases returns
9,000
In addition, the controller is aware of $13,000 of inventory that
was stolen during November from one of...
Exercise 2 (Darnell): Darnell Company uses the gross profit
method to estimate ending inventory and cost...
Exercise 2 (Darnell): Darnell Company uses the gross profit
method to estimate ending inventory and cost of goods sold when
preparing monthly financial statements required by its bank.
Inventory on hand at the end of July was $127,000. They estimate a
gross profit percentage of 30%. The following information for the
month of August was available from company records: Purchases
$228,000 Freight-in 6,100 Sales 359,000 Sales returns 9,900
Purchases returns 5,200 In addition, the controller is aware of
$10,000 of...
Vaughn Company uses the gross profit method to estimate
inventory for monthly reporting purposes. Presented below...
Vaughn Company uses the gross profit method to estimate
inventory for monthly reporting purposes. Presented below is
information for the month of May.
Inventory, May 1
$ 167,300
Purchases (gross)
580,800
Freight-in
32,100
Sales revenue
979,300
Sales returns
73,300
Purchase discounts
11,300
Compute the estimated inventory at May 31, assuming that the
gross profit is 25% of net sales.
The estimated inventory at May
31
$enter the dollar amount of the estimated inventory at May
31
Compute the estimated inventory...