Income statement and balance sheet

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

Do the following

Net Sales Computation:

Cost of Goods Sold Computation:

Gross Profit Computation:

Net Income Computation:
- computations are accurate (keep in Euros - do NOT convert)

- show work of computations

- partial credit granted for an attempt towards computations

Balance Sheet:

Statement of Owners Equity:

Narrative/Creativity - Explain each computation and how it helps decision makers:

If you use a Word file, use of APA format:

OR

Excel or PowerPoint, successful in capturing required components of assignment:

KEY FORMULAS:

NET SALES = SALES - SALES DISCOUNTS - SALES RETURNS & ALLOWANCES

COGS = BEGINNING INVENTORY + NET PURCHASES + FREIGHT IN - ENDING INVENTORY

GROSS PROFIT = NET SALES - COGS

NET INCOME = GROSS PROFIT - OPERATING EXPENSES

DO NOT FORGET ABOUT THE STATEMENT OF EQUITY AND BALANCE SHEET!