Reference no: EM132672200

Problem 1: At the beginning of the year, Riverbed had an inventory of $800000. During the year, the company purchased goods costing $2100000. If Riverbed reported ending inventory of $750000 and sales of $3600000, their cost of goods sold and gross profit rate would be

A. $1350000 and 59.72%.

B. $2150000 and 40.28%.

C. $2250000 and 40.28%.

D. $2150000 and 59.72%.

Problem 2: Vaughn Manufacturing accounting records show the following for the year ending on December 31, 2022.

Purchase Discounts$ 11500

Freight-in14600

Purchases711020

Beginning Inventory60000

Ending Inventory49600

Purchase Returns and Allowances10300

Using the periodic system, the cost of goods purchased is

A. $672620.

B. $718220.

C. $724420.

D. $703820.

Problem 3: Pronghorn's Fashions sold merchandise for $181000 cash during the month of July. Returns that month totaled $3500. If the company's gross profit rate is 30%, Pronghorn's will report monthly net sales revenue and cost of goods sold of

A. $181000 and $126700.

B. $177500 and $53250.

C. $177500 and $124250.

D. $181000 and $124250.

Problem 4: United Services and Supplies reports net income of $66000 and cost of goods sold of $343000. If US&S's gross profit rate was 40%, net sales were

A. $571667.

B. $857500.

C. $923500.

D. $646500.

Problem 5: Financial information is presented below:

Operating expenses$ 20600

Sales returns and allowances5000

Sales discounts3000

Sales revenue140000

Cost of goods sold85000

The profit margin ratio would be

A. 0.34.

B. 0.19.

C. 0.36.

D. 0.20.