Reference no: EM131767548

During the year Sarah's pet shops merchandise inventory decreased by $40,000. If the companies cost of goods sold for the year was $600,000 purchases would have been:
a.) $640,000
b.) $560,000
c.) $520,000 unable to determine

What is a difference between merchandise company and service enterprises?
a.) Merchandise companies must prepare multiple step income statement and service enterprises must prepare single step income statement
b.) Merchandise companies generally have a longer operating cycle than service enterprise
c.) Cost of goods sold is an expense for service enterprises but not for merchandising companiesd.) All are difference

Andre fashion sold merchandise for $95,000 cash during the month of July. Returns that month total $2,000. If the company's gross profit rate is 40% Andrea will report monthly net sales revenue and cost of goods sold of:
a.) $95,000 and $57,000
b.) $93,000 and $37,200
c.) $93,000 and $55,800
d.) $95,000 and $55,800

A company shows the following balances:

Sale Revenue $800,000
Sale Returns in Allowances $75,000
Sale Discount $25,000
Cost of Goods Sold $420,000

What is the gross profit rate?
a.) 53%
b.) 60%
c.) 40%
d.) 47%