The following information is available for Manar Company at the end of 2019: Beginning goods inventory $15,000 Ending

Question

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)

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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)

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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

Sales revenue	$159,000
Less: Sales returns and allowances	($7,000)
Less: Sales discounts	($2,000)
Net sales	$150,000

Net sales	$150,000
Less: cost of goods sold	($80,000)
Gross income	$70,000

Gross income	$70,000
Less: Operating expenses	($75,000)
Net income (loss)	($5,000)