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3 years ago

Using the following information, what is the amount of gross profit?

Business

1 answer:

SIZIF [17.4K]3 years ago

3 0

Answer:

Gross profit= $54,700

Explanation:

Giving the following information:

Purchases $37,000

Merchandise inventory, September 1 6,100

Merchandise inventory, September 30 6,800

Sales 91,000

First, we need to calculate the cost of goods sold:

COGS= beginning finished inventory + cost of goods purchased - ending finished inventory

COGS= 6,100 + 37,000 - 6,800

COGS= $36,300

Now, the gross profit:

Gross profit= sales - COGS

Gross profit= 91,000 - 36,300

Gross profit= $54,700

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During its first month of operations in March, Volz Cleaning, Inc., completed six transactions with the dollar effects indicated

Alekssandra [29.7K]

Answer and Explanation:

The Preparation of classified balance sheet for Volz Cleaning, Inc., at the end of March is shown below:-

Assets

Current Assets:

Cash $27,000

($45,000 - $8,000 - $2,000 - $7,000 + $3,000 - $4,000)

Investment (short term) $4,000

($7,000 - $3,000)

Notes receivables $2,000

Total Current Assets $33,000

Long Term Non Current Assets:

Computer equipment $4,000

Delivery Truck $35,000

Total long term $39,000

Total assets $72,000

Liabilities

Notes payable $27,000

Total liabilities $27,000

Stockholder equity

Common Stock $6,000

Additional Paid in Capital $39,000

Total Stockholder's equity $45,000

Total Liabilities & Stockholder's

equity $72,000

6 0

3 years ago

On December 1, 2018, ABC signed a $300,000, 5%, six-month note payable with the amount borrowed plus accrued interest due six mo

MrMuchimi

Answer:

$315,000 will be needed to pay back

Explanation:

When the note payable is signed, the entries would be as follows :

Cash $300,000 (debit)

Note Payable $300,000 (credit)

Interest that accrues over the period of the over the note receivable is

Interest expense $15,000 (debit)

Note Payable $15,000 (credit)

Interest expense = $300,000 × 5%

= $15,000

On June 1, 2019 the Note Payable plus Interest that needs to be paid would be :

Note Payable $315,000 (debit)

Cash $315,000 (credit)

4 0

3 years ago

Cutter Enterprises purchased equipment for $84,000 on January 1, 2018. The equipment is expected to have a five-year life and a

Anna71 [15]

Answer:

$25,200 and $58,800

Explanation:

The computation of the depreciation expense and the book value using the sum-of-the-years'-digits method is shown below:

The depreciation expense is

= (Purchase cost - residual value) × useful life ÷ (sum of years)

= ($84,000 - $8,400) × 5 years ÷ (1 + 2 + 3 + 4 + 5)

= $75,600 × 5 years ÷ 15 years

= $25,200

And, the book value is

= Purchase cost - depreciation expenses

= $84,000 - $25,200

= $58,800

We simply applied the above formulas

6 0

4 years ago

During the year, Sara sold a capital asset at a loss of $2,000. She had held the asset as an investment. This is the only capita

Sedbober [7]

Answer: A deduction for a loss incurred on the sale of a capital asset held for investment is a deduction for AGI.

Explanation:

AGI means the Adjusted gross income in the US tax system. Specific deductions are made from the individuals gross income to arrive at the AGI. the income which is taxable is calculated from the adjusted gross income from which personalized exemptions and itemized deductions.

In this case Sara has got a loss of $2,000 on the investment so this amount is deducted as a capital loss for AGI. AGI factors many allowable deductions from the gross income on which the income tax liability is calculated.

4 0

3 years ago

If the actual terms of trade are 1 belt for 1.5 swords and 70 belts are traded, how many belts will Morocco gain compared to the

motikmotik

Answer:

If Morocco produces 120 belts and exports 70 belts:

it will receive 105 swords (= 70 x 1.5)
it will consume 50 belts (its domestic consumption of belts will decrease by 10)

Explanation:

Without trade, Morocco will produce 60 swords and 60 belts and consume them all, but if it engages in trade, it will produce 120 belts.

Morocco's opportunity cost of producing one belt = 60 / 60 = 1
Morocco's opportunity cost of producing one sword = 60 / 60 = 1

Estonia's opportunity cost of producing one belt = 100 / 40 = 2.5
Estonia's opportunity cost of producing one sword = 40 / 100 = 0.25

If Morocco produces 120 belts and keeps current consumption level:

it consumes 60 belts
it can trade 40 belts for 60 swords
it will have a 20 belt surplus production

If Morocco produces 120 belts and exports 70 belts:

it will receive 105 swords (= 70 x 1.5)
it will consume 50 belts

6 0

4 years ago

Using the following information, what is the amount of gross profit?​

Using the following information, what is the amount of gross profit?