www.mathd.com/Student/PlayerTest.aspx?testidal Pearson\'s MyLab & My Blackboard
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www.mathd.com/Student/PlayerTest.aspx?testidal Pearson's MyLab & My Blackboard Content-Blackboard Learn 273) TEAS Test Study Guide -[Version 6 Science)- John 18267 Quiz: Ch 16 Quiz 41 of 3 (0 complete) This Question: 4 pts Consider the following partially completed income statements for merchandising companies and compute the missing amounts: E(Click the lioon to view the Income Statements.) Fit Apparel White Corp Net Sales Revenue 98,000 Cost of Goods Sold 29,000 Beginning Merchandise Inventory Purchases and Freight I Cost of Goods Available for Sale Ending Merchandise Inventory Cost of Goods Sold 51,000 91,000 (2,000) 64,000 34,000 (2,000) Gross Profit Selling and Administrative Expenses Operating Income 116,000 86,000 13,000 Enter any number in the edit fieids and then continue to the next question. 8 7 3 4 5 6Explanation / Answer
Fit Apparel:
Operating Income = Gross Profit - Selling and Administrative Expenses
$13,000 = $34,000 - Selling and Administrative Expenses
Selling and Administrative Expenses = $21,000
Cost of Goods Sold = Cost of Goods Available for Sale - Ending Merchandise Inventory
$64,000 = Cost of Goods Available for Sale - $2,000
Cost of Goods Available for Sale = $66,000
Cost of Goods Available for Sale = Beginning Merchandise Inventory + Purchase and Freight In
$66,000 = Beginning Merchandise Inventory + $51,000
Beginning Merchandise Inventory = $15,000
White Corp.
Operating Income = Gross Profit - Selling and Administrative Expenses
Operating Income = $116,000 - $86,000
Operating Income = $30,000
Cost of Goods Available for Sale = Beginning Merchandise Inventory + Purchase and Freight In
$91,000 = $29,000 + Purchase and Freight In
Purchase and Freight In = $62,000
Cost of Goods Sold = Cost of Goods Available for Sale - Ending Merchandise Inventory
Cost of Goods Sold = $91,000 - $2,000
Cost of Goods Sold = $89,000
Gross Profit = Net Sales Revenue - Cost of Goods Sold
$116,000 = Net Sales Revenue - $89,000
Net Sales Revenue = $205,000
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