56.
Beginning inventory is $30,000. Purchases of inventory during the year are $50,000. Cost
of goods sold is $60,000. What is ending inventory?
57.
The type of income statement that classifies items as operating and nonoperating is the
______ income statement.
58.
The type of income statement that reports a series of subtotals such as gross profit,
operating income, and income before taxes is a ______ income statement.
59.
The primary distinction between operating activities and nonoperating activities in a
multiple-step income statement is whether the activity is:
60.
The distinction between operating and nonoperating income relates to:
61.
Which of the following items may be classified as nonoperating revenues and expenses?
62.
Gross profit is calculated as net sales minus:
63.
Ravens Inc. has net sales of $200,000, cost of goods sold of $120,000, selling expenses of
$6,000, and nonoperating expenses of $2,000. What is the company’s gross profit?
64.
Given the information below, what is the gross profit?
Sales revenue
$320,000
Accounts receivable
50,000
Ending inventory
100,000
Cost of goods sold
250,000
Sales Returns
20,000
65.
Given the information in the table below, what is the company’s gross profit?
Sales revenue
$350,000
Accounts receivable
$280,000
Ending inventory
$230,000
Cost of goods sold
$180,000
Sales returns
$50,000
Sales discount
$20,000
66.
LeGrand Corporation reported the following amounts in its income statement:
Sales revenue
$440,000
Advertising expense
60,000
Interest expense
10,000
Salaries expense
55,000
Utilities expense
25,000
Income tax expense
45,000
Cost of goods sold
180,000
What was LeGrand’s gross profit?
67.
Wildwood, an outdoors clothing store, reports the following information for June:
Sales
revenue
$104,000
Income tax
expense
$11,000
Operating
expenses
22,000
Cost of goods
sold
65,000
Deferred
revenues
$15,000
Nonoperating
revenues
12,000
What is Wildwood’s gross profit for June?
68.
Operating income is calculated as net sales minus.
69.
Which measure reflects profitability from normal operations and a key performance
measure for predicting the future profit-generating ability of a company?
70.
Consider the following year-end information for Spitzer Corporation:
Cost of goods sold
$420,000
Sales revenue
800,000
Nonoperating expenses
10,000
Operating expenses
170,000
Income tax expense
80,000
What amount will Spitzer report for operating income?
71.
LeGrand Corporation reported the following amounts in its income statement:
Sales revenue
$440,000
Advertising expense
60,000
Interest expense
10,000
Salaries expense
55,000
Utilities expense
25,000
Income tax expense
45,000
Cost of goods sold
180,000
What was LeGrand’s operating income?
72.
LeGrand Corporation reported the following amounts in its income statement:
Sales revenue
$440,000
Advertising expense
60,000
Interest expense
10,000
Salaries expense
55,000
Utilities expense
25,000
Income tax expense
45,000
Cost of goods sold
180,000
What was LeGrand’s net income?
73.
The inventory costing method that matches each unit of inventory with its actual cost is
referred to as the _____ method.
74.
A company is most likely to utilize the specific identification method if its inventory
consists of:
75.
The inventory cost flow assumption that generally best matches the physical flow of
inventory is:
76.
The inventory cost flow assumption that results in a random mixture of goods being
included in the balance of inventory and cost of goods sold is:
77.
The inventory cost flow assumption that is least likely to match the physical flow of
inventory for most companies is:
78.
The following information relates to inventory for Shoeless Joe Inc.
Date
Quantity
Price
March 1
Beginning
Inventory
20
$2
March 7
Purchase
15
3
March 11
Sale
25
7
March 12
Purchase
20
4
At what amount would Shoeless report ending inventory using FIFO cost flow
assumptions?
79.
The following information relates to inventory for Shoeless Joe Inc.
Date
Quantity
Price
March 1
Beginning
Inventory
20
$2
March 7
Purchase
15
3
March 11
Sale
25
7
March 12
Purchase
20
4
At what amount would Shoeless report gross profit using LIFO cost flow assumptions?
80.
The following information relates to inventory for Shoeless Joe Inc.
Date
Quantity
Price
March 1
Beginning
Inventory
20
$2
March 7
Purchase
15
3
March 11
Sale
30
7
March 12
Purchase
15
6
At what amount would Shoeless report cost of goods sold using the weighted–average
cost flow assumption? (Round your answer to the nearest dollar)
81.
Inventory records for Dunbar Incorporated revealed the following:
Date
Transaction
Number
of Units
Unit
Cost
Apr. 1
Beginning inventory
500
$2.40
Apr. 20
Purchase
400
2.50
Dunbar sold 700 units of inventory during the month. Ending inventory assuming FIFO
would be:
82.
Inventory records for Dunbar Incorporated revealed the following:
Date
Transaction
Number of Units
Unit Cost
Apr. 1
Beginning inventory
500
$2.40
Apr. 20
Purchase
400
2.50
Dunbar sold 700 units of inventory during the month. Cost of goods sold assuming FIFO
would be:
83.
Inventory records for Dunbar Incorporated revealed the following:
Date
Transaction
Number of Units
Unit Cost
Apr. 1
Beginning inventory
500
$2.40
Apr. 20
Purchase
400
2.50
Dunbar sold 700 units of inventory during the month. Ending inventory assuming LIFO
would be:
84.
Inventory records for Dunbar Incorporated revealed the following:
Date
Transaction
Number of Units
Unit Cost
Apr. 1
Beginning inventory
500
$2.40
Apr. 20
Purchase
400
2.50
Dunbar sold 700 units of inventory during the month. Cost of goods sold assuming LIFO
would be: