A local tire store has beginning merchandise inventory of 37,400 ...

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A local tire store has beginning merchandise inventory of 37,400 and ending inventory of 26,300. The store purchased 8,500 of additional merchandise for sale during the quarter, returned 720 worth of merchandise damaged during shipment, and received 600 in purchase discounts. What is the cost of goods sold for the tire store?

Question 2

The A-1 Sign Company has net sales of 247,000, cost of goods sold of 109,000, gross profit of 138,000, total operating expenses of 62,500, and net income of 75,500. Rounded to the nearest tenth of a percent, what would the vertical analysis of the income statement have for gross profit?

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Answer to Question 1

18,280;
37,400 + 8,500 - 720 - 600 - 26,300 = 18,280

Answer to Question 2

55.9;
138,000  247,000 = 0.5587 = 55.9

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Excellent

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