Compute the Dollar Amount of the Items Indicated by Letters

question 93

Essay

Compute the dollar amount of the items indicated by letters a through f in the table below.
$\begin{array}{|l|r|c|}\hline&\text { Case 1 } & \text { Case } 2\\\hline\\\hline \text { Sales } & \$ 5,500 & \$ 13,000 \\\hline \text { Beginning Merchandise Inventory } & 75 & \text { d } \\\hline \text { Net Cost of Purchases } & 4,975 & 4,600 \\\hline \text { Ending Merchandise Inventory } & \text { a } & 600 \\\hline \text { Cost of Goods Sold } & \text { b } & \text { e } \\\hline \text { Gross Margin } & \text { c } & 4,800 \\\hline \text { Operating Expenses } & 450 & \text { f } \\\hline \text { Income Before Income Taxes } & 150 & 1,200\\\hline\end{array}$

---

Definitions:

Balance Sheet

A balance sheet is a financial statement that portrays a company's financial position at a specific point in time, listing assets, liabilities, and shareholders' equity.

Net Realizable Value

The estimated selling price of goods or assets in the ordinary course of business minus any costs involved in the sale or disposal process.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit sales by comparing net credit sales with the average accounts receivable.

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or disposal.