AC/113 AC113 AC 113 UNIT 5 ASSIGNMENT

AC 113 UNIT 5 ASSIGNMENT

Unit 5 Assignment:

This week's Assignment will introduce gross profit for a merchandising business, review the income statement and understand how to determine net sales, gross profit, and expenses.

Your Assignment consists of the following:

Exercises 4-1, 4-6 and 4-7

Templates are required to use for the Assignments. Download the template from the spreadsheet icon below. To assist you in making sure that you are on the right track with your Assignment, view the solutions to self-check your work. If you have questions, please contact your instructor.

Upload your Excel file to the Assignment Dropbox by the end of the unit.

Note: In order to ensure full functionality for these homework templates, it is recommended that you download/save each Excel template to your computer in the .xlsx format.

Exercises 4-1

|1 During the current year, merchandise is sold for $1,375,000. The cost of the merchandise sold is $880,000. a.What is the amount of the gross profit? b.Compute the gross profit percentage (gross profit divided by sales). c.Will the income statement necessarily report a net income? Explain.

Exercises 4-6

Obj|2 For the fiscal year, sales were $8,300,000, sales discounts were $100,000, sales returns and allowances were $45,000, and the cost of merchandise sold was $5,000,000. a.What was the amount of net sales? b.What was the amount of gross profit?

Exercises 4-7

Obj|2 The following expenses were incurred by a merchandising business during the year. In which expense section of the income statement should each be reported: (a) selling, (b) administrative, or (c) other? 1.Advertising expense 2.Depreciation expense on store equipment 3.Insurance expense on office equipment 4.Interest expense on notes payable 5.Rent expense on office building 6.Salaries of office personnel 7.Salary of sales manager 8.Sales supplies used