Reference no: EM132704975

Question - The following is a list of the accounts and their balances for Kwantlen Inspirations (a proprietorship owned by Jack Kwantlen) on March 31, 202X. The company uses a periodic inventory system.

Kwantlen, Drawings	33,000
Purchases	812,500
Salary Expense	298,000
Inventory, Ending	49,900
Interest Expense	16,700
Sales Revenue	1,419,000
Investment Revenue	11,000
Sales Discounts	20,100
Rent Expense	103,200
Advertising Expense	4,800
Freight in	29,200
Inventory, Beginning	24,600
Prepaid Advertising	5,000
Supplies	105,000
Kwantlen, Capital	159,000
Purchase Discounts	17,800
Unearned Revenues	16,000

The following questions are based on a multi-step income statement for the year ended March 31, 202X

Part A: What was Net Sales for the year?

a. $1,398,900

b. $1,419,000

c. $1,439,100

d. $1,381,100

Part B: What was Cost of Goods Sold for the year?

a. $798,600

b. $600,300

c. $823,900

d. $849,200

Part C: What was Gross Profit for the year?

a. $798,600

b. $600,300

c. $620,600

d. $682,300

Part D: What was Total Operating Expenses for the year?

a. $470,700

b. $462,700

c. $436,900

d. $406,000