Partial information follows about net sales, net purchases, cost of goods sold,
ID: 2421498 • 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
Sales return =133000
Purchase discounts=82000
COGS=1507700=opn stock+purchases-clo stock
Gross profit=net Sales -cogs=2305000-1507700
=797300
FREIGHT OUT=72100
NET INCOME=797300-726900=70400