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Homework answers / question archive / The following information is available for Manar Company at the end of 2019: Beginning goods inventory $15,000 Ending goods inventory 29,000 Purchased of goods 98,000 Fright in 500 Fright out 852 Purchase R&A 3,500 Purchase discount 1,000 Sales revenues 159,000 Sales R&A 7,000 Sales discount 2,000 Operating expenses 75,000 Compute each of the following: 1
The following information is available for Manar Company at the end of 2019: Beginning goods inventory $15,000 Ending goods inventory 29,000 Purchased of goods 98,000 Fright in 500 Fright out 852 Purchase R&A 3,500 Purchase discount 1,000 Sales revenues 159,000 Sales R&A 7,000 Sales discount 2,000 Operating expenses 75,000 Compute each of the following: 1. Cost of goods sold (COGS). 2. Net Sales. 3. Gross income (loss) 4. Net income (loss)
1. Cost of goods sold
| Beginning inventory | $15,000 | |
| Purchased of goods | $98,000 | |
| Less: Purchase returns and allowances | ($3,500) | |
| Less: Purchase discounts | ($1,000) | |
| Net Purchases | $93,500 | |
| Add: Freight in | $500 | |
| Cost of goods Purchased | $94,000 | |
| Cost of goods available for sale | $109,000 | |
| Less: Ending goods Inventory | ($29,000) | |
| Cost of goods sold | $80,000 |
2.
| Sales revenue | $159,000 |
| Less: Sales returns and allowances | ($7,000) |
| Less: Sales discounts | ($2,000) |
| Net sales | $150,000 |
3.
| Net sales | $150,000 |
| Less: cost of goods sold | ($80,000) |
| Gross income | $70,000 |
4.
| Gross income | $70,000 |
| Less: Operating expenses | ($75,000) |
| Net income (loss) | ($5,000) |
