Explore BrainMass

Explore BrainMass

    Les Fleurs: Financial Calculations

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Les Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E")
    Purchases..................... E250,000 Freight In.................. E8,000
    Sales discounts............. 4,000 Purchase returns........ 7,000
    Inventory Sales...................... 400,000
    December 31, 20X1..... 20,000 Purchase discounts.... 3,000
    December 31, 20X2..... 30,000 Sales returns............. 8,000

    Compute the following for Les Fleurs during 20X2: (Do not convert the figures to US dollars.)
    1. Net sales revenue
    2. Cost of goods sold
    3. Gross profit
    Please submit your assignment.

    © BrainMass Inc. brainmass.com June 3, 2020, 10:29 pm ad1c9bdddf
    https://brainmass.com/business/accounting/les-fleurs-net-sales-revenue-cost-of-goods-sold-and-gross-profit-233977

    Solution Preview

    1. Net sales revenue is the amount of sales minus sales returns minus sales discounts (because when customers return items, we don't get to count the original sale and when we give a customer a discount on a sale, the sale is counted as the net amount of that sale). As such, purchases were 400000; sales discounts were 4000; sales returns were ...

    Solution Summary

    This solution contains step-by-step calculations to determine net sales revenue, cost of goods sold and gross profit for Les Fleurs boutique.

    $2.19

    ADVERTISEMENT