Data taken from the records of XYZ Co. revealed the following for 2020: Inventory - January 1 :P2,000,000; Net purchases : P7,000,000; Inventory - December 31 : P2,800,000; Sales Returns and allowances: P750,000. Gross profit based on net sales is 20%. How much is the gross sales for 2020? A. P7,000,000 B. P7,750,000 C. P8,500,000 D. P9,125,000 E. answer not given

Q: Branson Electric prepared the following condensed income statements for two successive years.…

A: Lets understand the basics. For calculating corrected net income, we will need to use below formula.…

Q: nko Inc. reported the following balances at the end of each year:…

A: >Accounts Payable are the balances of suppliers that have not yet been paid in cash for the…

Q: Paco Ltd had the following for the year ended 2020: Ending inventory =$400,00 Opening inventory =$…

A: Cost of sales can be computed by adding the opening Inventory with the purchases made and the total…

Q: onahue adopted the dollar-value LIFO retail inventory method on January 1, 2020. The following…

A: Answer:

Q: GANDA Co. has a recent gross profit history of 40% of net sales. These data are taken from the…

A: Cost of goods sold = Beginning inventory + Net purchases + Freight in - Ending inventory

Q: The records of Kaitlyn Corporation showed the following on December 31, 2020: Gross Purchases…

A: Solution..   Gross purchase = $380,000  Purchase return = $20,000  Gross profit = $420,000…

Q: At December 31, 2020, the following information was available from HIBISCUS Company's accounting…

A: We are provided with the cost and the retail price of the goods available for sale. Along with that,…

Q: n, in roper soid, and gross profit for the year ended December 31, 2020 using the data. Write your…

A: Solution: Gross profit = Net Sales - Cost of goods sold Net Sales = Gross sales - Sales returns and…

Q: In its 2019 annual report, Marin, Inc. reported inventory of $ 670 million on January 31, 2020, and…

A: Average inventory = (Beginning inventory + ending inventory)/2 = (670+546)/2 = $608 million

Q: Indigo Corporation began operations on January 1, 2020, with a beginning inventory of $39,940 at…

A: The retail inventory method is used to calculate the cost of the store’s merchandise. Using this…

Q: On January 1, 2020, the merchandise inventory of Shoesmith Corp. was $600,000. During 2020,…

A: Sales Revenue in the business is made up of cost of goods sold and gross profit.  Sales Revenue =…

Q: Driole Company reported the following income statement data for a 2-year period. 2019 2020 $211,500…

A: Income statement is a statement showing the revenues and related expenses calculated to arrive at…

Q: What is the inventory turnover ratio for Fair Isle Inc. for 2020 if the inventory at the beginning…

A: The inventory turnover ratio indicates the number of times inventory turns to sales. It can be…

Q: The following information is available for Splish Brothers Inc. for three recent fiscal years.…

A: Ratio analysis means where different ratio of various years of years companies has been compared and…

Q: Skysong, Inc. reported these income statement data for a 2-year period. 2022 2021 Sales revenue…

A: Skysong Inco. Income Statement. 2021, 2022.   Particulars 2022 2021 A Sales Revenue 255500…

Q: Magnolia Company's inventory at January 1, 2020 was $7,600, and at December 31, 2020 the company had…

A: The company will earn profits from selling the inventory. The cost incurred for manufacturing the…

Q: Scott Equine Supplies had the following beginning inventory, net purchases, net sales,and gross…

A: Definition: Merchandise Inventory: Merchandise is the stock of goods bought by a wholesaler, or a…

Q: Selected data for ABC Co. for 2020 are as follows: Decrease in merchandise inventory: P20,000…

A: Cost of goods sold means the cost incurred on the goods which has been sold out. For calculating…

Q: . The inventory at January 1, 2019, had a retail value of $39,000 and a cost of $31,130 based on the…

A: Solution: Raleigh Department Store LIFO Retail Method   Cost   Retail Cost to Retail ratio…

Q: Notts Ltd's cost of sales on its statement of profit or loss for the ended 31 December 2020 is…

A: Purchases can be calculated with the help of the cost of sales formula which is as follows Cost of…

Q: The following information is available for Miguel Company at December 31, 2020: beginning inventory…

A: Definition:   Inventory turnover ratio: Inventory turnover ratio is used to determine the number of…

Q: Oriole Company had January 1 inventory of $291000 when it adopted dollar-value LIFO. During the…

A: Gross Profit = Sales - Cost of goods sold   Cost of goods sold = Beginning inventory + Purchases -…

Q: Data taken from the records of XYZ Co. revealed the following for 2020: Inventory - January 1…

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: The following information is available for cullumber company for three recent fiscal years.…

A: Solution:- Calculation of Inventory turnover ratio as follows under:-

Q: Midori Company had ending inventory at end-of-year prices of $100,000 at December 31, 2019; $119,900…

A: Base year prices = Ending inventory / year-end price indexe 2019 = $100,000 / 1.0 = $100,000 2020 =…

Q: a. The inventory at January 1, 2019, had a retail value of $51,000 and a cost of $38,060 based on…

A: The cost-to-retail ratio, also known as the cost-to-retail percentage, reveals what proportion of…

Q: 1. For the year ended December 31, 2020, PAMA Company reported the following amounts: Inventory,…

A: Net sales = Operating expenses / 10% = 150000 / 10% = P1500000

Q: PRETTY Co. has a recent gross profit history of 40% of net sales. These data are taken from the…

A: Gross profit=Net sale×Rate=P 4,500,000×40%=P 1,800,000

Q: Marine Corporation collected $120,000 during 2020. Of this amount, $2,000 was still unearned as of…

A: Cost of goods sold = Inventory purchases + (Beginning inventory - ending inventory) = $48,000 + 0 =…

Q: Company C had cost of goods sold in the year of sale 2019 of $1,500,000 and net sales was…

A: Inventory Turnover = Cost of Goods Sold/Average Inventory

Q: Waterway Industries had January 1 inventory of $310000 when it adopted dollar-value LIFO. During the…

A: LIFO- It is a method of valuation of inventory which calculate the inventory cost on the basis of…

Q: What is Seaside Surfing's COGS if the company had inventory of $20,000 at the beginning of 2019, had…

A: Cost of goods sold: Cost of goods sold is the total of all the expenses incurred by a company to…

Q: Staley Watch Company reported the following income statement data for a 2 year period:   2019…

A: We know that, Gross profit = Net Sales Revenue - Cost of Goods sold  The formula to calculate the…

Q: CAC Co. provided these information for 2020: Inventory - January 1 : P400,000; Freight in :…

A: The gross purchases are calculated by adding the ending inventory in the cost of sales and deducting…

Q: ABC Corporation reports the following information for 2020. Based on these figures, what is ABC's…

A: Inventory turnover = Cost of goods sold / Average inventory where, Average inventory = (beginning…

Q: Following information is available for Nick Company for the year ended 2020:     Additional…

A: Ratio analysis is used by organizations to evaluate the performance of the organization. It also…

Q: Wickes Ltd has the following figures at December 2020 £ Revenue(90% credit sales) 1,936,000 Opening…

A: Wickes Ltd has the following figures at December 2020 £ Revenue(90% credit sales) 1,936,000 Opening…

Q: The income statement of Stellar Company is shown below. STELLAR COMPANY INCOME STATEMENT FOR THE…

A: The cash flow statement is an essential part of the financial statements of the organization. It is…

Q: Anpanman, Inc. reported the following information for the year 2020: • Beginning Inventory-…

A: Gross profit= Sales x Gross profit ratio Cost of goods sold = Sales - Gross profit

Q: The following information is available for Cullumber Company for three recent fiscal years.…

A: Inventory Turnover Ratio: Inventory Turnover Ratio shows how effectively inventory is managed by…

Q: Botica Heaven has a total annual sale of PhP 40 M and is in operation with an inventory value of Php…

A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: The January 28, 2020 (fiscal year 2019) financial statements of Firm C reported the following…

A: Under the FIFO method, the inventory that is purchased first is sold first, hence the ending…

Q: The following information is available for Miguel Company at December 31, 2020: beginning inventory…

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: In its 2019 annual report, Kingbird, Inc. reported inventory of $ 626 million on January 31, 2020,…

A: Inventory turnover is an accounting turnover ratio that determines the number of times inventory is…

Q: Staley Watch Company reported the following income statement data for a 2 year period:   2019…

A: Following is the answer to the given question

Q: The goods are sold at a gross profit of 20% of sales. For interim statement purposes, the  inventory…

A: Sales revenue: sales revenue is the revenue earned from selling a product Beginning inventory:…

Q: What was the gross margin for 2022? * Selected information from the accounting records of the…

A: Accounts receivable turnover = Sales / Average accounts receivable 5 = sales /((900000+1000000) /2…

Q: Lily Technologies Company reported the following income statement data for a 2-year period.…

A: The income statement is one of the essential part of financial statements used for reporting the…

Q: CAC Co. provided these information for 2020: Inventory - January 1 : P400,000; Freight in :…

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.