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    accountme1's Avatar
    accountme1 Posts: 2, Reputation: 1
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    #1

    Sep 19, 2009, 09:53 PM
    How to do net income.
    Please help me with answer 4, 5, and 7. I'm a little confused.
    Les Fleurs, a boutique in Paris, France

    Les Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E")
    Purchases………………... E250,000 Freight In……………… E8,000
    Sales discounts…………. 4,000 Purchase returns…….. 7,000
    Inventory Sales…………………. 400,000
    December 31, 20X1….. 20,000 Purchase discounts…. 3,000
    December 31, 20X2….. 30,000 Sales returns…………. 8,000
    Compute the following for Les Fleurs during 20X2: (Do not convert the figures to US dollars.)
    1. Net sales revenue
    2. Cost of goods sold
    3. Gross profit
    4. Net income
    5. Balance sheet, December 31, 20X2
    7. Statement of Owner's Equity, December 31, 20X2
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Sep 20, 2009, 02:00 AM

    See this thread:
    https://www.askmehelpdesk.com/accoun...et-396556.html

    I don't know what some of the numbers represent. I don't see where there's enough info to figure it out, and you've included less info than the other post.
    accountme1's Avatar
    accountme1 Posts: 2, Reputation: 1
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    #3

    Sep 20, 2009, 06:34 AM

    I need to know how to do 4, 5, and 7. With net income, how do you know what depreciations they are asking for?



    Les Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E")

    Purchases………………... E250,000
    Purchase returns…….. 7,000
    Purchase discounts…. 3,000

    Freight In……………… E8,000
    Sales... 400,000
    Sales discounts…………. 4,000
    Sales returns…………. 8,000


    Inventory
    December 31, 20X1….. 20,000
    December 31, 20X2….. 30,000
    Administrative Expenses... 20,000

    Balance Sheet
    Cash... 10,000
    Inventory... 20,000
    Owner's Equity... 30,000

    Compute the following for Les Fleurs during 20X2: (Do not convert the figures to US dollars.)

    1. Net sales revenue
    2. Cost of goods sold
    3. Gross profit
    4. Net income
    5. Balance sheet, December 31, 20X2
    7. Statement of Owner's Equity, December 31, 20X2
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #4

    Sep 20, 2009, 08:52 PM

    Obviously, you did not bother to actually read my post on the link I sent you to.
    Zonion's Avatar
    Zonion Posts: 2, Reputation: 1
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    #5

    Oct 8, 2009, 07:49 PM
    Go to www.x.rate.com. Use historic lookup. Find the rate for the year you are doing in the currency, you are using. Your income statement will look similar to the one below:

    Your Company
    INCOME STATEMENT
    For the year ending December 31, 2007

    Canadian Exchange Rate U.S. Dollars
    Revenues 4,600,000
    Cost of goods sold 11,000,000
    Gross Profit 2,500,000
    Sales Expense 44,600,000
    General and administrative expense 7,000,000
    Depreciation expense 29,000,000
    Net Income
    Use you total and the exchange rate to get u.s. $. Hope this is a help to you.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #6

    Oct 9, 2009, 11:43 PM

    (Do not convert the figures to US dollars.)
    Did you read this part of the problem?
    Zonion's Avatar
    Zonion Posts: 2, Reputation: 1
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    #7

    Oct 12, 2009, 02:09 AM
    Do forgive me. An oversight on my part.
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #8

    Oct 14, 2009, 08:19 PM

    You're forgiven. :-)
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #9

    Oct 15, 2009, 01:43 AM

    Professional answers from me? Are you confusing me with someone else? :p
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