Reference no: EM132915002

Problem 1: Quartz Corporation had the following account balances: Sales, $875,000; Sales Returns and Allowances, $73,000; Cost of Goods Sold, $580,000; and Selling, General & Administrative Expenses, $120,000. How much was Quartz's gross profit?

Option 1: $248,000
Option 2: $222,000
Option 3: $102,000
Option 4: $875,000
Option 5: $802,000

Problem 2: Quartz Corporation had retained earnings balances of $480,000 and $400,000 at the beginning and ending of the year, respectively. If revenues were $300,000 and expenses were $350,000, how much were dividends for the year assuming no other transactions affected retained earnings?

Option 1: $30,000
Option 2: $80,000
Option 3: $130,000
Option 4: $50,000