Using the Following Information,calculate for 20xx (A)net Sales,(b)beginning Merchandise Inventory,(c)gross

question 15

Essay

Using the following information,calculate for 20xx (a)net sales,(b)beginning merchandise inventory,(c)gross margin,and (d)net income.
$\begin{array}{lr}\text { Sales staff Salaries Expense } & \$ 7,000 \\\text { Sales } & 90,000 \\\text { Ending Merchandise Inventory } & 16,000 \\\text { Purchases Returns and Allowances } & 500 \\\text { General and Administrative Expenses } & 11,000 \\\text { Sales Returns and Allowances } & 1,200 \\\text { Freight-In } & 1,500 \\\text { Purchases } & 30,000 \\\text { Cost of Goods Sold } & 47,000\end{array}$

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Definitions:

Net Cash Flows

The difference between a company's cash inflows and outflows over a specific period.

Payback Period

The period of time required for an investment to generate cash flows sufficient to recover its initial cost.

Factory Overhead

All indirect costs associated with the manufacturing process, excluding direct materials and direct labor costs.

Depreciation

The methodical distribution of the expense of a physical asset throughout its lifespan.