Compute the net profit for a company with the following data:
a. Beginning inventory $ 150,000
b. Purchases at billed cost $ 330,000
c. Sales returns and allowances $ 250,000
d. Rent $ 60,000
e. Salaries $ 400,000
f. Utilities $ 180,000
g. Ending inventory (cost) $ 250,000
h. Inbound freight cost $ 80,000
i. Gross Sales $ 1,300,000
First we need to determine the Net Sales.
Net Sales = 1,300,000 - 250,000 = 1,050,000
Now we determine ...
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