Schumacher Company uses the perpetual inventory system, and it engaged in the fo

Question

Schumacher Company uses the perpetual inventory system, and it engaged in the following transactions during 2014: 1) Started the business by issuing common stock for $8,010 cash 2) Paid cash to purchase $5,170 of inventory 3) Sold inventory that cost $3,255 for $7,760 cash 4) Incurred and paid operating expenses, $267 Schumacher Company engaged in the following transactions during 2015: 1) Paid cash to purchase $6,225 of inventory 2) Sold inventory that cost $7,510 for $16,170 cash 3) Incurred and paid operating expenses, $534 The gross margin for the year 2015 is:

Explanation / Answer

The gross margin for the year 2015= Sales - cost of sales

Margin= $16,170-$7,510= $8,660

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