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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?
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
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