accounting

A company had sales of $388,000 and cost of goods sold of $219,000. Its gross profit equals $169,000

true

A company's quick assets are $183,000 and its current liabilities are $161,000. This company's acid-test ratio is 1.14

true

A company has net sales of $865,000 and cost of goods sold of $573,500. Its net income is $103,400. The company's gross margin and operating expenses, respectively, are

$291,500 and $188,100

KLM Corporation's quick assets are $5,929,000, its current assets are $12,075,000 and its current liabilities are $8,025,000. Its acid-test ratio equals

0.74

A company's current assets are $20,630, its quick assets are $11,660 and its current liabilities are $13,100. Its quick ratio equals

0.89

A company's current assets are $25,420, its quick assets are $14,690 and its current liabilities are $12,420. Its acid-test ratio equals:

1.18

Beckenworth had cost of goods sold of $10,221 million, ending inventory of $2,889 million, and average inventory of $2,045 million. Its days' sales in inventory equals:(Use 365 days a year.)

103.2 days

On April 24 of the current year, The Memphis Pecan Company experienced a tornado that destroyed the company's entire inventory. At the beginning of April, the company reported beginning inventory of $227,450. Inventory purchased during April (until the date of the tornado) was $198,500. Sales for the month of April through April 24 were $643,200. Assuming the company's typical gross profit ratio is 50%, estimate the amount of inventory destroyed in the tornado.

104350

Big Box Store has operated with a 30% average gross profit ratio for a number of years. It had $117,000 in sales during the second quarter of this year. If it began the quarter with $19,700 of inventory at cost and purchased $73,700 of inventory during the quarter, its estimated ending inventory by the gross profit method is:

11500

Cushman Company had $836,000 in sales, sales discounts of $12,540, sales returns and allowances of $18,810, cost of goods sold of $397,100, and $287,585 in operating expenses. Net income equals

119965

Hull Company reported the following income statement information for 2015: 2015 Sales $ 416,000 Cost of goods sold: Beginning inventory 141,000 Cost of goods purchases 279,000 Cost of goods available for sale 420,000 Ending inventory 150,000 Cost of goods sold 270,000 Gross profit $ 146,000 The beginning inventory balance for 2015 is correct. However, the ending inventory figure for 2015 was overstated by $26,000. Given this information, the correct gross profit figure for 2015 would be

120000

Garza Company had sales of $145,000, sales discounts of $2,175, and sales returns of $3,480. Garza Company's net sales equals

139345

A company's inventory records report the following: August 1 Beginning balance 20 units @ $10 August 5 Purchase 15 units @ $9 August 12 Purchase 19 units @ $10 On August 15, it sold 40 units. Using the FIFO perpetual inventory method, what is the value of the inventory at August 15 after the sale?

140

A company purchases merchandise with a catalog price of $24,000. The company receives a 40% trade discount from the seller. The seller also offers credit terms of 1/10, n/30. Assuming no returns were made and that payment was made within the discount period, what is the net cost of the merchandise?

14256

On December 31 of the current year, Plunkett Company reported an ending inventory balance of $214,000. The following additional information is also available: • Plunkett sold and shipped goods costing $37,800 to Savannah Enterprises on December 28 with shipping terms of FOB shipping point. The goods were not included in the ending inventory amount of $214,000. • Plunkett purchased goods costing $43,800 on December 29. The goods were shipped FOB destination and were received by Plunkett on January 2 of the following year. The shipment was a rush order that was supposed to arrive by December 31. These goods were included in the ending inventory balance of $214,000. • Plunkett's ending inventory balance of $214,000 included $14,800 of goods being held on consignment from Carole Company. (Plunkett Company is the consignee.) • Plunkett's ending inventory balance of $214,000 did not include goods costing $94,800 that were shipped to Plunkett on December 27 with shipping terms of FOB destination and were still in transit at year-end. Based on the above information, the amount that Plunkett should report in ending inventory on December 31 is

155400

Grays Company has inventory of 25 units at a cost of $6 each on August 1. On August 3, it purchased 35 units at $11 each. 27 units are sold on August 5. Using the FIFO perpetual inventory method, what amount will be reported in cost of goods sold for the 27 units that were sold?

172

Prentice Company had cash sales of $94,825, credit sales of $83,775, sales returns and allowances of $1,925, and sales discounts of $3,700. Prentice's net sales for this period equal

172975

A buyer failed to take advantage of the vendor's credit terms of 1.9/10, n/45, but instead paid the invoice in full at the end of 90 days. By not taking advantage of the cash discount, the equivalent annual interest lost on the amount of the purchase is

19.8

Using the following year-end information for Calvin's Clothing, calculate the current ratio and acid-test ratio for the business: Cash $ 58,110 Short-term investments 14,000 Accounts receivable 58,000 Inventory 270,000 Prepaid expenses 5,600 Accounts payable 108,000 Other current payables 31,900

2.90 and 0.93

Jammer Company uses a weighted average perpetual inventory system and reports the following: August 2 Purchase 24 units at $18.50 per unit. August 18 Purchase 26 units at $20.00 per unit. August 29 Sale 48 units. August 31 Purchase 29 units at $21.50 per unit. What is the per-unit value of ending inventory on August 31?

21.36

A company has net sales of $755,700and cost of goods sold of $545,700. Its net income is $18,410. The company's gross margin and operating expenses, respectively, are

210,000 and $191,590

Marquis Company uses a weighted-average perpetual inventory system. August 2, 19 units were purchased at $10 per unit. August 18, 24 units were purchased at $12 per unit. August 29, 21 units were sold. What is the amount of the cost of goods sold for this sale?

233.44

A company has sales of $403,800 and its gross profit is $170,300. Its cost of goods sold equals

233500

A company's gross profit was $99,390 and its net sales were $402,700. Its gross margin ratio equals

24.7%

A company purchased $2,800 of merchandise on July 5 with terms 3/10, n/30. On July 7, it returned $310 worth of merchandise. On July 8, it paid the full amount due. The amount of the cash paid on July 8 equals

2415

A company had net sales of $768,400 and cost of goods sold of $551,770. Its net income was $21,150. The company's gross margin ratio equals

28.2%

Lucia Company reported cost of goods sold for Year 1 and Year 2 as follows: Year 1 Year 2 Beginning inventory $ 122,000 $ 130,400 Cost of goods purchased 250,400 277,000 Cost of goods available for sale 372,400 407,400 Ending inventory 130,400 135,400 Cost of goods sold $ 242,000 $ 272,000 Lucia Company made two errors: 1) ending inventory at the end of Year 1 was understated by $15,400 and 2) ending inventory at the end of Year 2 was overstated by $6,400. Given this information, the correct cost of goods sold figure for Year 2 would be

293800

A company's normal selling price for its product is $21 per unit. However, due to market competition, the selling price has fallen to $16 per unit. This company's current inventory consists of 210 units purchased at $17 per unit. Replacement cost has fallen to $14 per unit. Calculate the value of this company's inventory at the lower of cost or market

2940

Using the following year-end information for Bauman, LLC, calculate the current ratio and acid-test ratio: Cash $ 61,620 Short-term investment 12,000 Accounts receivable 47,500 Inventory 238,000 Prepaid expenses 23,380 Accounts payable 97,700 Other current payable 26,800

3.07 and 0.97

Given the following information, determine the cost of the inventory at June 30 using the LIFO perpetual inventory method. June 1 Beginning inventory 14 units at $20 each June 15 Sale of 6 units for $50 each June 29 Purchase 6 units at $25 each The cost of the ending inventory is

310

A company purchased $3,200 worth of merchandise. Transportation costs were an additional $280. The company later returned $220 worth of merchandise and paid the invoice within the 2% cash discount period. The total amount paid for this merchandise is

3200.40

Mega Skateboard Supplier had net sales of $43,181 million, its cost of goods sold was $28,909 million, and its net income was $1,283 million. Its gross margin ratio equals

33%

A company has beginning inventory of 36 units at a cost of $13.00 each on October 1. On October 5, it purchases 24 units at $14.00 per unit. On October 12 it purchases 34 units at $15.00 per unit. On October 15, it sold 72 units. Using the FIFO periodic inventory method, what is the value of the inventory at October 15 after the sale?

330

Sandoval needs to determine its year-end inventory. The warehouse contains 32,000 units, of which 4,200 were damaged by flood and are not sellable. Another 3,200 units were purchased from Markor Company, FOB shipping point, and are currently in transit. The company also consigns goods and has 5,200 units at a consignee's location. How many units should Sandoval include in its year-end inventory?

36200

On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements. The following information is available: Beginning inventory, January 1: $4,300 Net sales: $43,000 Net purchases: $44,000 The company's gross margin ratio is 15%. Using the gross profit method, the cost of goods sold would be

36550

Bedrock Company reported a December 31 ending inventory balance of $416,500. The following additional information is also available: • The ending inventory balance of $416,500 included $72,900 of consigned inventory for which Bedrock was the consignor. • The ending inventory balance of $416,500 included $23,800 of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year. Based on this information, the correct balance for ending inventory on December 31 is

392700

A company has beginning inventory of 10 units at a cost of $30 each on February 1. On February 3, it purchases 40 units at $32 each. 13 units are sold on February 5. Using the FIFO periodic inventory method, what is the cost of the 13 units that are sold?

396

Giorgio had cost of goods sold of $9,649 million, ending inventory of $2,317 million, and average inventory of $2,193 million. Its inventory turnover equals:

4.40

Use the following information for Shafer Company to compute inventory turnover for 2015. 2015 2014 Net sales $655,000 $584,400 Cost of goods sold 390,000 360,990 Ending inventory 79,200 80,880

4.87

Cushman Company had $842,000 in sales, sales discounts of $12,630, sales returns and allowances of $18,945, cost of goods sold of $399,950, and $289,650 in operating expenses. Gross profit equals

410475

A company has sales of $715,400 and cost of goods sold of $286,400 Its gross profit equals

429000

A company's net sales are $802,510, its costs of goods sold are $444,590, and its net income is $109,370. Its gross margin ratio equals

44.6%

A company uses the periodic inventory system and had the following activity during the current monthly period. November 1: Beginning inventory of 102 Units @ $30 November 5: Purchased 102 Units @ $30 November 8: Purchased 52 Units @ $30 November 16: Sold 134 Units @ $55 November 19: Purchased 25 Units @ $30 Using the weighted-average inventory method, the company's ending inventory would be

4410

A company had inventory on November 1 of 5 units at a cost of $24 each. On November 2, they purchased 14 units at $26 each. On November 6 they purchased 10 units at $29 each. On November 8, 11 units were sold for $59 each. Using the LIFO perpetual inventory method, what was the value of the inventory on November 8 after the sale?

458

Cushman Company had $826,000 in net sales, $361,375 in gross profit, and $206,500 in operating expenses. Cost of goods sold equals:

464625

A company had beginning inventory of 10 units at a cost of $19 each on March 1. On March 2, it purchased 10 units at $32 each. On March 6 it purchased 6 units at $24 each. On March 8, it sold 22 units for $67 each. Using the FIFO perpetual inventory method, what was the cost of the 22 units sold?

558

A company's inventory records report the following in November of the current year: Beginning November 1 6 units @ $24 Purchase November 2 12 units @ $26 Purchase November 6 8 units @ $28 On November 8, it sold 22 units for $54 each. Using the LIFO perpetual inventory method, what was the amount recorded in the cost of goods sold account for the 22 units sold

584

Jefferson Company has sales of $300,000 and cost of goods available for sale of $270,000. If the gross profit ratio is typically 30%, the estimated cost of the ending inventory under the gross profit method would be:

60000

A company had the following purchases during the current year: January: 26 units at $113 February: 36 units at $124 May: 31 units at $136 September: 28 units at $144 November: 26 units at $154 On December 31, there were 48 units remaining in ending inventory. These 48 units consisted of 8 from January, 9 from February, 13 from May, 7 from September, and 11 from November. Using the specific identification method, what is the cost of the ending inventory?

6490

A company's net sales were $683,900, its cost of goods sold was $238,000 and its net income was $37,850. Its gross margin ratio equals

65.2%

A company's warehouse contents were destroyed by a flood on September 12. The following information was the only information that was salvaged: 1. Inventory, beginning: $29,100 2. Purchases for the period: $18,100 3. Sales for the period: $56,100 4. Sales returns for the period: $810 The company's average gross profit ratio is 29%. What is the estimated cost of the lost inventory

7944.10

On September 1 of the current year, Scots Company experienced a flood that destroyed the company's entire inventory. Because the company had not completed its month end reporting for August, it must estimate the amount of inventory lost using the gross profit method. At the beginning of August, the company reported beginning inventory of $216,100. Inventory purchased during August was $192,790. Sales for the month of August were $543,800. Assuming the company's typical gross profit ratio is 40%, estimate the amount of inventory destroyed in the flood.

82610

A company purchased $9,100 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it returned $455 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it was entitled to. The cash paid on June 24 equals

8386

A company purchased $10,800 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. The freight charge was $900 and was prepaid by the seller. On June 20, it returned $1,440 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. The cash paid on June 24 equals

9979

On September 12, Vander Company sold merchandise in the amount of $6,300 to Jepson Company, with credit terms of 4/10, n/30. The cost of the items sold is $4,500. Vander uses the periodic inventory system. The journal entry or entries that Vander will make on September 12 is

Account receivable 6,300 Sales 6,300

On September 12, Vander Company sold merchandise in the amount of $1,900 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $1,310. Vander uses the periodic inventory system. On September 14, Jepson returns some of the merchandise. The selling price of the merchandise is $165 and the cost of the merchandise returned is $115. Jepson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Vander makes on September 18 is

Cash 1,700.30 Sales discounts 34.70 Accounts receivable 1,735.00

On February 3, Smart Company sold merchandise in the amount of $4,300 to Truman Company, with credit terms of 3/10, n/30. The cost of the items sold is $2,970. Smart uses the perpetual inventory system. Truman pays the invoice on February 8, and takes the appropriate discount. The journal entry that Smart makes on February 8 is

Cash 4,171 Sales discounts 129 Accounts receivable 4,300

A company had a gross profit of $332,000 based on sales of $416,000. Its cost of goods sold equals $748,000

false

A company had net sales of $549,000 and cost of goods sold of $347,000. Its gross margin equals $896,000

false

A company's current ratio is 2.0 and its quick ratio is 0.31. This company is probably an excellent credit risk because the ratios reveal no indication of liquidity problems

false

Using the retail inventory method, if the cost to retail ratio is 80% and ending inventory at retail is $162,000, then estimated ending inventory at cost is $224,143

false