What was the net profit?
4. During the year 19—, the Morton Trading Company’s books showed:
- Net sales amounting to $265,000.
- Purchases were $148,000, of which $7,540 worth of goods
- were returned.
- The cost of goods sold was 60% of the net sales and the
- final inventory was $84,900.
- Sales salaries $29,760.
- Advertising $30,000.
- Shipping expenses $4,680.
- Office salaries $10,260.
- Rent $4,800.
- Insurance $1,500.
- Depreciation of plant $6,890.
- Supplies $1,230.
- Taxes $4,430.
Prepare a statement of profit and loss for the year.
VI
1. The books of Alfred Gristede show the following record at the close of business September 30, 19—:
- Inventory September 1, 19—, $500,000.
- Purchases $2,500,000.
- Purchases returns $50,000.
- Sales $3,250,000.
- Sales returns $100,000.
If the gross profit is $850,000, what is the final inventory?
2. The profit and loss records of A. C. Dye for the year 19— show the following figures:
- Merchandise January 1, 19—, $235,960.
- Sales $875,900.
- Sales returns $6,900.
- Purchases net $586,900.
- Advertising $16,000.
- Office salaries $22,500.
- Sales salaries $34,800.
- Insurance $6,300.
- Taxes $21,700.
- Depreciation on buildings $4,630; on motor fleet $1,875.
- Accounts written off as uncollectible $36,875.
- Interest on notes and accounts receivable $6,790.
- Interest on notes payable $3,275.