accounting chap 5 book multiple choice quiz

a company purchased a $4,500 of merchandise on May 1 with terms of 2/10, n/30. on may 6, it returned $250 of that merchandise. on may 8, it paid the balance owed for merchandise, taking any discount it is entitled to. the cash paid on may 8 is

($4,500-$250)*(100%-2%)= $4,165

a company's quick assets are $37,500, its current assets are $80,000, and its current liabilities are $50,000. its acid-test ratio equals

acid-test ratio= $37,000/$50,000=.750

a company's net sales are $675,000, it costs of goods sold are $459,000, and its net income $74,250. its gross margin ratio equals

gross margin ratio=($675,00-$459,000)/$675,000=37%

a company has $550,000 in net sales and $193,000 in gross profit. this means its cost of goods sold equals

gross profit= $550,000-$193,000= $357,000

a company has cash sales of $75,000, credit sales of $320,000, sales returns and allowances of $13,700, and sales discounts of $6,000. its net sales equal

net sales=$75,000+$320,000-$13,700-$6,000=$375,300