Question

Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system.

Answer 1

Answer:

Campus Stop, Inc.

Partial Income Statement

Sales revenue                              $323,300

Sales returns                                    ($1,730)

Sales discounts and allowances  ($2,270)

Net sales                                       $319,300

Cost of goods sold                      ($172,870)

Gross profit                                   $146,430

Gross profit margin = $146,430 / $319,300 = 45.86%