Question

factors might have caused the change in the gross profit ratio? po Vill WHAA AA Problem 5-9A Financial Statements LO2 · 3 A list of accounts for Lloyd Inc. at December 31, 2017, follows: Net purchases Retoined Earnings January 1, 2017 Salaries Payable $56,350 12.000 50.000 22.340 6.000 1.450 1.450 $ 61,000+ 20.252 650 111.700 Accounts Receivable Advertising Expense Capital Stock Cash Dividends Income Tax Expense Income Tax Payable Inventory January 1, 2017 December 31, 2017 Net 978 Transportation in Unii Expense Woons and Salines Expense Wages Payable 1.800 23.000 6.400 5,000 Required 1. Determine cost of goods sold for 2017. 2. Determine net income for 2017. 3. Prepare a balance sheet dated December 31, 2017

Answer 1

Amounts in $ Less: Less: Cost of goods sold = Opening stock + Net purchases + Direct expenses - Closing stock = 6400+61608+375-5900 62,483 BALANCE SHEET Net sales 111760 COGS -62,483 Equity and liabilities Gross profit 49,277 Capital stock 50,000 Operating expenses Retained earnings 32,379 Advertising expense 12900 (28252+10127-6000) Utilities expense 1800 Income tax payable 1,450 Wages & salaries 23000 37700 Salaries payable 650 Profit before tax 11,577 Wages payable 120 Income tax -1450 TOTAL 84,599 Profit after tax 10,127 Assets Accounts receivable 56,359 Closing inventory 5,900 Cash 22,340 TOTAL 84,599 Less: