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Question - At the beginning of the year, Kelly Sales had $2,400 of merchandise inventory. During the year, Kelly purchased $22,000 of inventory. At the end of the year, a count of the inventory revealed that Kelly had $1,600 of inventory on hand. Required: Answer the following questions. Show your work.
a] What is the amount of goods available for sale?
b] What is cost of goods sold for the year?
Of the remaining 80% (the credit sales), 60% are collected in the month of sale, with remaining 40% collected in the following month. What is the total cash collected (both from accounts receivable and for cash sales) in the month of January?
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Pipsqueak Co. has an exciting opportunity to buy out its main local competitor for $200,000. Doug Kindle, owner/operator of the business, calculates the combine
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