Log in
Accounting
6
answers
0
watching
74
views
13 Dec 2019

A company had a gross profit of $300,000 based on sales of$400,000, which means its cost of goods sold is equal to$700,000.

True or false

Watch
6
answers
0
watching
74
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Unlock all answers

Get 1 free homework help answer.
Get unlimited access
Already have an account? Log in
Share
Get unlimited access
Already have an account? Log in
Share
Get unlimited access
Already have an account? Log in
Share
Get unlimited access
Already have an account? Log in
Share
Get unlimited access
Already have an account? Log in
Share
Collen Von
Collen VonLv2
17 Dec 2019
Get unlimited access
Already have an account? Log in
Share

Related questions

Gross profit equals the difference between the cost of goods sold minus net sales. True or False?

Vertical Analysis. Refer to the information of Cuneo Company above. 1- Prepare a common-size income statement for year 1, 2 and 3 by expressing each line item as a percentage of sale revenue. Cuneo Company Income Statements For years 1, 2, and 3 Year 1: Sales: $1,000,000 Less: Cost of goods sold: (700,000) Gross margin: $300,000 Less operating expenses: Selling expenses: (150,000) Administrative expenses: (50,000) Operating income: $100,000 Less: Interest expenses: (25,000) Income before taxes: $75,000 Year 2: Sales:$1,200,000 Less: Cost of goods sold: (700,000) Gross margin: $500,000 Less operating expenses: Selling expenses: (220,000) Administrative expenses:(60,000) Operating income:220,000 Less: Interest expenses: (25,000) Income before taxes: $195,000 Year 3: Sales: $1,700,000 Less: Cost of goods sold: (1,000,000) Gross margin: $700,000 Less operating expenses: Selling expenses: (250,000) Administrative expenses:(120,000) Operating income: $330,000 Less: Interest expenses: (25,000) Income before taxes: $305,000

The Anshul Corporation used an inventory method for its taxreturn that was different from the one it used when it prepared theincome statement it distributed to its owners. Some of thedifferences between its tax return and the income statement itdistributed to owners are shown below.

Tax Return

Owners' Income Statement

Sales

$700,000

$700,000

Cost of goods sold

$330,000

$300,000

Operating expenses

$370,000

$400,000

Income taxes expense

$129,500

$140,000

Net income

$240,500

$260,000

Determine how much more or less cash the company has availableby using a different inventory method for tax purposes than it usedwhen it prepared the income statement distributed to itsowners.

a.

$19,500 less
b.

$19,500 more
c.

$10,500 less
d.

$10,500 more

Weekly leaderboard

Home
Homework Help 3,900,000
Accounting 580,000
Start filling in the gaps now
Log in