Please answer following questions and show how answers were found The following
ID: 2395296 • Letter: P
Question
Please answer following questions and show how answers were found
The following selected information is taken from the books of the Barlow Company: 14ND 10 Cash Sales discounts Sales Purchases Selling expense Administrative expense Accounts receivable Accounts Payable Sales returns and allowances Purchases returns and allowances 5 Inventory, 1/1/2005 Inventory, 1231/2005 Purchases discounts Transportation- in Transportation- out Dividends 20 400 60 90 200 500 225 130 15 50 25 80 1. Net Sales for the period is: 2. The Total Cost of net purchases for the period is: 3. Cost of Goods Available for Sale for the period is 4. Cost of Goods Sold for the period is: 5. Gross profit for the period is 6. Net Income for the period is:Explanation / Answer
req 1: Net sales: Sales 1000 Less: Sales return and allowance 20 Less: Sales discount 10 Net sales: 970 Net cost of purchases Purchases 400 Add: Transportation in 50 450 Less: Purchase discount 15 Less: Purchase return and allowance 5 Net cost of Purchases 430 Req 3: Cost of Available for sale: Net cost of purchases 430 Add: beginning Inventory 225 Cost of Available for sale: 655 Rreq 4: Cost of Goods sold: Cosst of goods available 655 Less: ending inventory 130 Cost of Goods sold: 525 Req 5: Sales revenue 970 Less: Cost of Goods sold 525 Gross profit 445 Req 6: Gross profit: 445 Lless: Expense Selling expense 60 Admin expense 90 Ttransportation out 25 Net income 270