Following data were taken from the Y4 financial statements of Ultimate Style Com
ID: 2456090 • Letter: F
Question
Following data were taken from the Y4 financial statements of Ultimate Style Company:
Administrative Expenses $70,000
Cost of Goods Sold $500,000
Interest and other income, net $10,000
Other losses (loss on sale of building) $5,000
Provision for income taxes $38,000
Net Sales $800,000
Total Assets (12/31/y3) $900,000
Total Assets (12/31/y4) 1,100,000
Selling Expense $100,000
What was the gross profit?
a.500,000 b.300,000 c. 200,000 d. 130,000
What was the gross profit percentage?
A. 12.125 b. 16.25 c. 37.5 62.5
What was the Total Assets Turnover?
a. 0.89 b. 0.80 c. 0.73 d. 0.30
Consider the following accounts and their balances:
Gross sales revenue
800,000
Sales returns and allowances
12,000
Credit card discounts
5,000
Sales discounts
3,000
Cost of goods sold
670,000
Compute the net sales:
a. 110,000 b. 130,000 c. 780,000 d. 800,000
Gross sales revenue
800,000
Sales returns and allowances
12,000
Credit card discounts
5,000
Sales discounts
3,000
Cost of goods sold
670,000
Explanation / Answer
Ans)
A) Gross profit Sale-cost of good sold 800000-500000 300000 b) GP ratio GP/Sale*100 300000/800000*100 37.5 C) Total Assests turnover Sale/Total Assests 800000/900000 0.89 A) Net Sale Gross revenue sale 800000 Less Sales returns and allowances 12000 Less Credit card discounts 5000 Less Sales discounts 3000 Net Sale 780000