U\'se the follosing information from Sparron, Inc, June 2018 accounting records
ID: 2406997 • Letter: U
Question
U'se the follosing information from Sparron, Inc, June 2018 accounting records to answer questions 11 and 12 Freight-I General and administrative expenses 420,000 Income taxes Interest expeese Inventory, June 1, 2018 leventory, June 30, 2018 Purchases Purchases Returns and Allowances Sales Sales Disconts 24,000 400,000 330,000 800,000 3,100,000 16,000 11. Sparmow's June 2018 Cost of Goods Sold is: a. $740,000. b$840,000. 5860,000. d $880,000. 2. Sparnow's June 2018 Income from Operations is: $1,516,000. b$1,540,000. ?.$1,680,000. d $2,204,000. 13. On May 15 0, n/30. On May 19, Home Depot retuned $60,000 of the inventory to Frigidaire. On May 23, Home Depot paid the remaining amount it owed to he supplier. How much Cash did Home Depot pay to its supplier on May 237 a. $300,000. b. $294,000. c. $240,000. d. $235,200. 14. Mikasa Company sells products to Macy's. The goods are shipped from Mikasa's factory in Portugal to Macy's warehouse in Miami, FL by UPS. On May 30, 2018 Mikasa ships products which arrive at Macy's warchouse on June 4, 2018. The shipping terms are FOB shipping poist. Whose inventory are these goods in transit on May 31, 20187 a. Mikasa Company b. Macy's. c. Both companies, 50% to each. d. UPSExplanation / Answer
Since, multiple questions have been posted, I have answered both the parts of first question (11 and 12)
_____
Question 11:
The value of cost of goods sold is arrived as below:
Answer for Question 11 is $880,000 (which is Option D)
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Question 12:
The value of income from operations is determined as follows:
Answer for Question 12 is $1,540,000 (which is Option B)
Inventory, June 1, 2018 400,000 Add Net Purchases (800,000 - 10,000) 790,000 Freight-In 20,000 Less Inventory, June 30, 2018 330,000 Cost of Goods Sold $880,000Related Questions
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