Use the following financial information to find the entry you would make on an income statement for GROSS MARGIN for the year ended December 31, 2011: Gross Sales, 241,000; Sales Returns and Allowances, 7,500; Sales Discounts, 7,800; Merchandise Inventory, January 1, 2011, 45,200; Merchandise Inventory, December 31, 2011, 71,300; Net Purchases, 91,900; Freight In, 1950; Salaries, 97,000; Rent, 30,600; Utilities, 2,500; Insurance, 2,450; and Income Tax, 19,350.
A) 206,500
B) 157,950
C) 138,800
D) 107,700
Q. 2Convert the percent to a decimal: .95
Q. 3Use the following financial information to find the entry you would make on an income statement for NET INCOME (LOSS) for the year ended December 31, 2011: Gross Sales, 110,000; Sales Returns and Allowances, 8,000; Sales Discounts, 2,400; Merchandise Inventory, January 1, 2011, 50,000; Merchandise Inventory, December 31, 2011, 43,100; Net Purchases, 80,500; Freight In, 975; Salaries, 92,900; Rent, 15,500; Utilities, 1,275; Insurance, 2,450; and Income Tax, 15,650.
A) 23,458
B) (98,544)
C) 65,782
D) (116,550)
Q. 4Convert the percent to a decimal: 24.8
Q. 5Use the following financial information to find the entry you would make on an income statement for COST OF GOODS SOLD for the year ended December 31, 2011: Gross Sales, 180,000; Sales Returns and Allowances, 9,000; Sales Discounts, 6,300; Merchandise Inventory, January 1, 2011, 60,900; Merchandise Inventory, December 31, 2011, 66,700; Net Purchases, 58,300; Freight In, 600; Salaries, 84,700; Rent, 22,000; Utilities, 1,125; Insurance, 2,025; and Income Tax, 17,750.
A) 45,985
B) 30,800
C) 53,100
D) 65,754