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Accounting: Income statement, gross profit, net income etc

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See attached file for table.

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

Administrative Expenses 20,000

Balance Sheet - December 31, 20X1

Cash 10,000
Inventory 20,000
Owner's Equity 30,000

Compute the following for Les Fleurs during 20X2: (Do not convert the figures to US dollars.)

Net sales revenue
Cost of goods sold
Gross profit
Net income
Balance sheet, December 31, 20X2
Statement of Owner's Equity, December 31, 20X2

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Solution Summary

The problem set deal with issues in accounting: preparing the income statement, determining the net income etc

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Chidi Ngene, M. Sc.
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  • B. Sc., University of Nigeria
  • M. Sc., London South Bank University
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