Partial information follows about net sales, net purchases, cost of goods sold,
ID: 2420336 • Letter: P
Question
Partial information follows about net sales, net purchases, cost of goods sold, gross profit, total expenses and net income for Jensen Company. Compute the missing values.
Net Sales
Sales $2,500,000
Sales discounts 62,000
Sales returns & allowances ?
Net sales $2,305,000
Net Purchases
Purchases $1,500,000
Freight-in 65,000
Purchase discounts ?
Purchase returns & allowances 8,000
Net purchases $1,475,000
Cost of Goods Sold
Beginning inventory $ 256,300
Ending inventory 223,600
Cost of goods sold ?
Gross Profit
Gross profit ?
Total Expenses
Rent $ 108,100
Salaries 437,200
Utilities 37,000
Freight-out ?
Other 72,500
Total expenses $ 726,900
Net Income
Net income ?
Explanation / Answer
Net sales= sales - sales discount - sales return & allowance
2305000= 2500000-62000-sales return & allowance
Sales return & allowance= 133000
Net purchase= purchase+ fright- purchase discounts- purchase return & allowance
1475000=1500000-65000- purchase discounts-8000
Purchase discounts= 82000
Cost of good sold= beginning inventory +net purchase - ending inventory
= 256300 + 1475000 -223600
=1507700
Total expenses = rent + salaries + utilities+ fright out+ other
726900 =108100+437200+37000+fright out+ 72500
Fright out= 144600
Net sales 2305000 Less cost of good sold 1507000 Gross profit 797300 Less total expenses 726900 Net income 70400