Financial Accounting Chapter 5 Flashcard
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During the current year, merchandise is sold for $972,000. The cost of the merchandise sold is $602,640. -a. What is the amount of the gross profit? -b. Compute the gross profit percentage (gross profit divided by sales). Round to the nearest whole number. -c. When will the income statement report net income?
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a. 369360 b. 38% c. When operating expense are less than gross profit
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For a recent year, Best Buy reported revenue of $50,272 million. Its gross profit was $12,637 million. What was the amount of Best Buy's cost of merchandise sold? (Enter answer in millions.)
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37635
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What are the three types of expenses?
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(a) selling expense, (b) administrative expense, or (c) other expense
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Advertising expense
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Selling expense
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Depreciation expense on store equipment
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Selling expense
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Insurance expense on office equipment
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administrative expense
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Interest expense on notes payable
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other expense
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Rent expense on office building
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administrative expense
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Salaries of office personnel
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administrative expense
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Salary of sales manager
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Selling expense
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Sales supplies used
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Selling expense
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Net sales=
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Sales-Sales returns and allowances-Sales discounts
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Gross Profit=
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Net sales-Cost of merchandise sold
