for the month of january, an engine parts supplier company had the following financial information: merchandise inventory, january 1, $322,000, merchandise inventory january 31 $316,400, grooss purchases, $243,460, purchase returns and allowances $26,880 and frieght in $3,430 what are the goods available for sale ? what is the cost of goods for january ? if net sales were $389,450 what was the gross margin for january? if total operating expenses were $179,800 what was the net profit or loss?
To get the answers to the given questions, we need to use the following formulas:
1. Goods Available for Sale = Merchandise Inventory, January 1 + Gross Purchases + Freight In
2. Cost of Goods Sold = Goods Available for Sale - Merchandise Inventory, January 31
3. Gross Margin = Net Sales - Cost of Goods Sold
4. Net Profit or Loss = Gross Margin - Total Operating Expenses
Now let's calculate the answers step by step:
1. Goods Available for Sale:
Goods Available for Sale = $322,000 (Merchandise Inventory, January 1) + $243,460 (Gross Purchases) + $3,430 (Freight In)
Goods Available for Sale = $568,890
2. Cost of Goods Sold:
Cost of Goods Sold = Goods Available for Sale - Merchandise Inventory, January 31
Cost of Goods Sold = $568,890 - $316,400 (Merchandise Inventory, January 31)
Cost of Goods Sold = $252,490
3. Gross Margin:
Gross Margin = Net Sales - Cost of Goods Sold
Gross Margin = $389,450 (Net Sales) - $252,490 (Cost of Goods Sold)
Gross Margin = $136,960
4. Net Profit or Loss:
Net Profit or Loss = Gross Margin - Total Operating Expenses
Net Profit or Loss = $136,960 (Gross Margin) - $179,800 (Total Operating Expenses)
Net Profit or Loss = -$42,840 (net loss)
Thus, the answers are:
- Goods Available for Sale: $568,890
- Cost of Goods Sold: $252,490
- Gross Margin: $136,960
- Net Profit or Loss: -$42,840 (net loss)