On January 1, 2011, Rachael Ray Corporation had merchandise inventory of $50,000. At December 31, 2011, Rachael Ray had the following account balances.
Freight-in $ 4,000
Purchases 500,000
Purchase discounts 6,000
Purchase returns and allowances 2,000
Sales 800,000
Sales discounts 5,000
Sales returns and allow. 10,000
At December 31, 2011, Rachael Ray determines that its ending inventory is $60,000.
Compute Rachael Ray's 2011 gross profit. (List multiple entries from largest to smallest amounts, e.g. 10, 5, 1. Enter all amounts as positive amounts and subtract where necessary. )
Inventory, January 1Inventory, December 31Sales discountsPurchasesPurch. Returns and allow.Purchase discountsFreight-inSalesSales returns and allow. $
Less: SalesInventory, December 31Purch. Returns and allow.Freight-inPurchase discountsSales returns and allow.Inventory, January 1PurchasesSales discounts $
Sales discountsFreight-inInventory, December 31PurchasesSales returns and allow.Inventory, January 1Purch. Returns and allow.Purchase discountsSales
Net sales
Cost of goods sold
Purch. Returns and allow.Sales discountsFreight-inSalesPurchase discountsPurchasesSales returns and allow.Inventory, January 1Inventory, December 31
Purch. Returns and allow.Purchase discountsFreight-inSales discountsSales returns and allow.PurchasesSalesInventory, January 1Inventory, December 31 $
Less: PurchasesPurchase discountsInventory, December 31Freight-inSalesSales discountsInventory, January 1Purch. Returns and allow.Sales returns and allow.
Purch. Returns and allow.Freight-inPurchase discountsInventory, January 1Inventory, December 31SalesSales returns and allow.Sales discountsPurchases
Add: Freight-inPurchasesSales returns and allow.Sales discountsInventory, December 31Inventory, January 1SalesPurch. Returns and allow.Purchase discounts
Cost of goods available for sale
Purch. Returns and allow.Purchase discountsFreight-inSales discountsSalesInventory, December 31Inventory, January 1Sales returns and allow.Purchases
Cost of goods sold
Gross Profit $
Compute Rachael Ray's 2011 operating expenses if net income is $130,000 and there are no non-operating activities.
$
