Les Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E")
Purchases………………...
E250,000 Freight In……………… E8,000
Sales discounts…………. 4,000 Purchase returns…….. 7,000
Inventory Sales…………………. 400,000
December 31, 20X1….. 20,000 Purchase discounts…. 3,000
December 31, 20X2….. 30,000 Sales returns…………. 8,000
Compute the following for Les Fleurs during 20X2: (Do not convert the figures to US dollars.)
Net sales revenue
Cost of goods sold
Gross profit
Prepare an Income Statement, Owner's Equity Statement, and Balance Sheet.
Anyones help would be appreciated.
Where exactly do you get stuck? The definitions of revenue, costs and profit are straightforward.
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Les Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E")
Purchases………………...
E250,000 Freight In……………… E8,000
Sales discounts…………. 4,000 Purchase returns…….. 7,000
Inventory Sales…………………. 400,000
December 31, 20X1….. 20,000 Purchase discounts…. 3,000
December 31, 20X2….. 30,000 Sales returns…………. 8,000
Compute the following for Les Fleurs during 20X2: (Do not convert the figures to US dollars.)
Net sales revenue
Cost of goods sold
Gross profit
To compute the Net Sales Revenue, Cost of Goods Sold, and Gross Profit for Les Fleurs during 20X2, you need to gather the relevant information and perform the necessary calculations. Here's how you can do it:
1. Net Sales Revenue:
Net Sales Revenue is the total revenue generated from sales after deducting any sales discounts and sales returns. You can calculate it using the following formula:
Net Sales Revenue = Sales - Sales Discounts - Sales Returns
In this case:
Net Sales Revenue = 400,000 - 4,000 - 8,000
2. Cost of Goods Sold:
Cost of Goods Sold represents the cost associated with the products that were sold during the accounting period. It can be calculated using the following formula:
Cost of Goods Sold = Purchases + Freight In - Purchase Returns - Purchase Discounts + Opening Inventory - Closing Inventory
In this case:
Cost of Goods Sold = 250,000 + 8,000 - 7,000 - 3,000 + 20,000 - 30,000
3. Gross Profit:
Gross Profit is the profit made from the sale of goods before deducting any expenses. It can be calculated using the following formula:
Gross Profit = Net Sales Revenue - Cost of Goods Sold
In this case:
Gross Profit = Net Sales Revenue - Cost of Goods Sold (calculated in the previous steps)
Once you have calculated Net Sales Revenue, Cost of Goods Sold, and Gross Profit, you can use these figures to prepare the Income Statement, Owner's Equity Statement, and Balance Sheet.
Note: If you have any further questions or need assistance with preparing financial statements, please let me know.