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New Member
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Aug 23, 2007, 04:33 PM
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Calculationg revenue
Can some one tell me if I am right? The ones with the * are the ones I'm concerned about please help
Sales.. . $60,000 $42,500 $36,000 $18400* $23,600
Cost of goods sold
Merchandise inventory (beginning).. . 6,000 17,050 7,500 7,000 2,560
Total cost of merchandise purchases 36,000 62,250 * 51500* 32,000 5,600
Merchandise inventory (ending) . 30,000 * (2,700) (9,000) (6,600) 20,560*
Cost of goods sold.. . 34,050 15,900 12,750 * 52,000 * 5,600
Gross profit.. . 74050 * 26600 3,750 45,600 26160*
Expenses.. . 9,000 10,650 12,150 2,600 6,000
Net income (loss).. . 60,050 * $15,950 (8,400) $43,000 20,160*
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Ultra Member
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Aug 25, 2007, 12:50 AM
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Please refer to this Announcement
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New Member
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Aug 25, 2007, 01:04 PM
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I did the assignment the ones with the *'s by them are my answers I was just wanting to know if I did it correctly.
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Ultra Member
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Aug 25, 2007, 01:46 PM
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Indeed you did. I misread what you had done.
Sorry about that.
I reviewed your answers and here are my comments.
I have divided it into 5 “companies”. Company 1 is the company with sales of 60,000, Company 2 has sales of 42, 500 and so on….
General Notes:
Sales – COGS = Gross Profit
Gross Profit – Expenses = Net Income
Or you can say, Sales – COGS – Expenses = Net Income
If you look at your numbers, they do not hold true to the above equations. Your biggest mistake seems to be in calculating COGS
To calculate COGS, the formula is:
COGS = Beg Inv + Purchases – End Inv
Company 1:
End Inv = 7,950
Check to make sure its right.
Beg Inv 6,000 + Purchases 36,000 – End Inv 7,950 = COGS 34,050
GP is therefore 25,950 and Net Income is 16,950
Based on the above formulas, do you think you would be able to solve the other companies?
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New Member
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Aug 25, 2007, 03:00 PM
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I'm going to try thanks a lot
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New Member
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Aug 25, 2007, 03:21 PM
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How do u calculate the ending merchandise?
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New Member
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Aug 25, 2007, 04:24 PM
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Sales.. . $60,000 $42,500 $36,000 $98,200 $23,600
Cost of goods sold
Merchandise inventory (beginning). . 6,000 17,050 7,500 7,000 2,560
Total cost of merchandise purchases 36,000 (38,050) 15,750 32,000 5,600
Merchandise inventory (ending) . 7950 (2,700) (9,000) (6,600) 2,560
Cost of goods sold.. . 34,050 15,900 32,250 52,600 5,600
Gross profit.. . 25,950 26600 3,750 45,600 18,000
Expenses.. . 9,000 10,650 12,150 2,600 6,000
Net income (loss).. . 16,950 $15,950 (8,400) $43,000 12,000
Can u tel me if this is right
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Ultra Member
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Aug 25, 2007, 10:44 PM
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Originally Posted by Rarequeen
how do u calculate the ending merchandise?
How to calculate Ending Inventory?
The formula is:
Beg Inv + Purchases– End Inv = COGS
Therefore, we can also say that
Beg Inv + Purchases – COGS = End Inv
Plus in the numbers and you get your answer.
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Ultra Member
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Aug 25, 2007, 10:55 PM
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Company 2:
Purchases = -3,850
Formula: COGS + End Inv – Ben Inv
Company 3:
COGS = 32,350
Formula: Sales – GP
Purchases = 15,750
Formula: COGS + End Inv – Ben Inv
Company 4:
COGS = 45,600
Formula: Ben Inv + Purchases – Ending Inventory
Sales = 91,200
Formula: GP + COGS
Company 5:
End Inv = 2,560
Formula: Ben Inv + Purchases – COGS
GP = 18,000
Formula = Sales – COGS
NI = 12,000
Formula = GP - Expenses
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New Member
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Aug 26, 2007, 09:55 AM
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Thnak Captain I got all of them right except 3 you are a great teacher! Cudos to you
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Ultra Member
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Aug 26, 2007, 02:06 PM
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You're welcome
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