New Hope, Inc is a merchandiser of stone ornaments
It sold 15,000 units during the year. The company has provided the following information:
Sales Revenue $525,000
Purchases (excluding Freight In) 347,000
Selling and Administrative Expenses 36,500
Freight In 15,500
Beginning Merchandise Inventory 42,000
Ending Merchandise Inventory 55,500
How much is the gross profit for the year?
A) $212,500
B) $349,000
C) $176,000
D) $178,000
C .C) Cost of Goods Sold = Beginning Merchandise Inventory + Purchases + Freight In - Ending Merchandise Inventory = $42,000 + $347,000 + $15,500 - 55,500 = $349,000
Gross Profit = Sales Revenue - Cost of Goods Sold = $525,000 - $349,000 = $176,000
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Clara owns a small gift shop in South Carolina. She hopes the economy will rebound this fall as she has to order her Christmas merchandise and other holiday gifts in February. She wants to make sure she has enough goods for the surge in sales that the holiday season usually brings to her retail store. Here, Clara is using _____ to be sure she has enough gifts for those extra customers that she hopes will bear the economic woes and shop for holiday presents.
A. substitutes B. smoothing C. complements D. buffering E. demographics
The adjusted trial balance shows ________
A) account balances after adjustments B) revenue and expense accounts only C) account balances before adjustments D) balance sheet accounts only