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    johnsay18 Posts: 3, Reputation: 1
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    #1

    Aug 11, 2012, 03:45 AM
    How to compute total sales, purchases, cost of sales & gross profit?
    Required:
    1.Compute the total sales for each year, 2010,2011 & 2012.
    2.Compute the total purchases for 2010,2011 & 2012.
    3.Compute the total cost of sales for 2010,2011 & 2012.
    4.Compute the gross profit for each year, 2010,2011 & 2012.

    A Company has not prepared financial statements for 3 years since Dec. 31, 2009.

    During the 3- year period, the cash receipts & cash disbursements were maintained & sales on account were entered directly into an account receivable ledger.

    However, no general ledger postings have been made since the Dec. 31, 2009 closing.

    The examination of the records disclosed balances at the beginning and end of 3- year period as follows:

    ***Dec. 31, 2009 -- Dec. 31, 2012
    Less than 1 year old 77,000 -- 141,000
    1 to 2 years old 6,000 -- 9,000
    2 to 3 years old 0 -- 4,000
    Over 3 years old 0 -- 11,000

    Total accounts receivable 83,000 -- 165,000

    Inventory 58,000 -- 94,000
    Accounts payable 25,000 -- 55,000

    No account balances were written off during the 3- year. The ratio of gross profit to sales remains constant from year to year. Other data available are:

    ***2010 -- 2011 -- 2012
    Cash received applied to
    Current year 744,000 -- 809,000 -- 1,044,000
    Accounts of prior year 67,000 -- 75,000 -- 84,000
    Accounts of two years prior 3,000 -- 2,000 -- 10,000

    Total collections 814,000 -- 886,000 -- 1,138,000

    Cash sales 85,000 -- 130,000 -- 156,000
    Payments of accounts payable 625,000 -- 706,000 -- 869,000
    johnsay18's Avatar
    johnsay18 Posts: 3, Reputation: 1
    New Member
     
    #2

    Aug 11, 2012, 03:52 AM
    Re- Type:

    Excel Company has not prepared financial statements for 3 years since Dec. 31, 2009.

    During the 3- year period, the cash receipts & cash disbursements were maintained & sales on account were entered directly into an account receivable ledger.

    However, no general ledger postings have been made since the Dec. 31, 2009 closing.

    The examination of the records disclosed balances at the beginning and end of 3- year period as follows:

    *Dec. 31, 2009
    Less than 1 year old 77,000
    1 to 2 years old 6,000
    2 to 3 years old 0
    Over 3 years old 0

    Total accounts receivable 83,000

    Inventory 58,000
    Accounts payable 25,000

    *Dec. 31, 2012
    Less than 1 year old 141,000
    1 to 2 years old 9,000
    2 to 3 years old 4,000
    Over 3 years old 11,000

    Total accounts receivable 165,000

    Inventory 94,000
    Accounts payable 55,000


    No account balances were written off during the 3- year. The ratio of gross profit to sales remains constant from year to year. Other data available are:

    *2010
    Cash received applied to:
    Current year 744,000
    Accounts of prior year 67,000
    Accounts of two years prior 3,000

    Total collections 814,000

    Cash sales 85,000
    Payments of accounts payable 625,000

    *2011
    Cash received applied to:
    Current year 809,000
    Accounts of prior year 75,000
    Accounts of two years prior 2,000

    Total collections 886,000

    Cash sales 130,000
    Payments of accounts payable 706,000

    *2012
    Cash received applied to:
    Current year 1,044,000
    Accounts of prior year 84,000
    Accounts of two years prior 10,000

    Total collections 1,138,000

    Cash sales 156,000
    Payments of accounts payable 869,000

    Required:
    1.Compute the total sales for each year, 2010,2011 & 2012.
    2.Compute the total purchases for 2010,2011 & 2012.
    3.Compute the total cost of sales for 2010,2011 & 2012.
    4.Compute the gross profit for each year, 2010,2011 & 2012.
    johnsay18's Avatar
    johnsay18 Posts: 3, Reputation: 1
    New Member
     
    #3

    Aug 12, 2012, 12:08 AM
    I Need help.

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