Reference no: EM132472267

Question 1 - Alpha Company provided the following data concerning its income statement: sales, $955,000; purchases, $500,000; beginning inventory, $260,000; ending inventory, $232,000; operating expenses, $90,000; freight-in, $5,000; sales discounts, $25,000; purchases discounts, $15,000; sales returns & allowances, $140,000; and purchases returns & allowances, $47,000. The data is complete and provide the basis for preparation of an income statement. How much is net income?

Question 2 - Given below are account balances for Charlie Company:

Gross sales, $104,000

Sales returns and allowances, $4,000

Selling expenses, $12,000

Cost of goods sold, $46,000

Interest expense, $3,000

How much is the gross profit margin?

Question 3 - Annapolis Company's bank statement indicated an ending cash balance of $8,440. Alpha's accountant discovered that outstanding checks amounted to $715 and deposits in transit were $960. Additionally, the bank statement showed service charges of $40. What is the correct adjusted ending cash balance?