The Income Statement of Leang's Luggage Includes the Items Listed

question 167

Essay

The income statement of Leang's Luggage includes the items listed below: $$\begin{array} { l r } \text { Net sales } & \$ 875,000 \\\text { Gross profit } & 305,000 \\\text { Beginning inventory } & 75,000 \\\text { Purchase discounts } & 12,000 \\\text { Purchase returns and allowances } & 8,000 \\\text { Freight-in } & 10,000 \\\text { Operating expenses } & 320,000 \\\text { Purchases } & 560,000\end{array}$$ Instructions
Use the appropriate items listed above as a basis for determining:
(a) Cost of goods sold.
(b) Cost of goods available for sale.
(c) Ending inventory.

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Definitions:

Situational Leadership Model

A leadership theory that proposes the effectiveness of leadership styles varies depending on the readiness and behavior of the people being led and the specifics of the situation.

Telling Style

A communication approach characterized by explicitly instructing or directing others in what they should do.

Task Behavior

A leadership style characterized by clear explanations of tasks, directions, and expectations to ensure that goals are understood and accomplished.

Transactional Leaders

Leaders who focus on routine transactions, using rewards and punishments to motivate followers.