Reference no: EM131696159
Q1. Explain the inventory system followed by merchandiser.
Q2.Assume that Guardian Company uses a periodic inventory system and has these account balances: Purchases $600,000; Purchase Returns and Allowances $25,000; Purchase Discounts $11,000; and Freight-in $19,000; beginning inventory of $45,000; ending inventory of $55,000; and net sales of $750,000.
Required: Determine the cost of goods sold.
Q3. Deloy Company gathered the following condensed data for the year ended December 31, 2016
Cost of goods sold $ 690,000
Net sales 1,250,000
Administrative expenses 234,000
Interest expense 58,000
Dividend revenue 38,000
Loss from employee strike 233,000
Selling expenses 45,000
You are required to prepare multi step income statement for the year ended December 31, 2016.