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  Answer this Question    Ask about Accounting    Ask about another Subject  
 

oma0528
Dec 20, 2007, 07:48 PM
Please help, need directions to finding "ending Inv" ; "Gross profit" ; "net Income(loss)"

Any formulas I can use to finish the rest of the problems that go with this one? They all vary in filling in the blanks.

Truly appreciate the help!

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000

Cost of goods sold
Merchandise inventory (beginning) . . . . . . . . . . 6,000
Total cost of merchandise purchases . . . . . . . 36,000

Merchandise inventory (ending) . . . . . . . . . . . .

Cost of goods sold . . . . . . . . . . . . . . . . . . . . . 34,050
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . .

Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000

Net income (loss) . . . . . . . . . . . . . . . . . . . . . . .

ms180sx
Dec 20, 2007, 09:59 PM
i might be wrong, havent' done acct. in a few semseters.

begin inv + new purchases - cogs = ending inv which should be 7950
total sales - cogs= gross income ( 25950)
income- expenses = net income. ( 16950)

assuming all inventory was sold at constant markup cogs is ~ 56% of sales, therefore markup should be 44%..

i dont see a loss, i see a net gain.

hope this was helpful and correct..lol
tim-