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    Income statement and balance sheet

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    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!

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    https://brainmass.com/business/financial-statements/income-statement-and-balance-sheet-294263

    Solution Preview

    See attached file for clarity.

    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 ...

    Solution Summary

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