A company began operations at the start of Year 1.
During the year, it had cash sales of $50,000 and credit sales of $450,000. The company collected $420,000 in cash from the credit sales. The company purchased inventory costing $250,000 and paid $18,000 in dividends. The company incurred the following expenses:
|Cost of goods sold||210,000||Rent expense||6,000|
|Salary expense||80,000||Depreciation expense||4,000|
|Interest expense||5,000||Income tax expense||57,000|
Using this information, answer the following questions.
|Click Here to View All Chapters 5 & 6 Problems at Once||View|
|3||Inventory Set Aside||Easy|
|4||Loss On Inventory||Easy|
Calculating Operating Income
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|9||The Effect of Inventory Errors||Hard|
|1||The Multistep Income Statement||12:44|
|2||Gross Profit vs Net Profit||6:15|
|5||COGS and Inventory||2:57|
|6||Perpetual vs Periodic||7:10|
|10||Drawbacks to Periodic||6:07|
|13||FIFO and LIFO||20:17|
|14||Estimating with Gross Profit||7:23|