Xu,IncReported the Following Information for 2013 and 2012 Determine the Following Amounts for Xu,Inc

question 62

Essay

Xu,Inc.reported the following information for 2013 and 2012:
$\begin{array}{lll}& \underline { 2013 }&\underline { 2012 }\\\text { Sales } & \$ 850,000 & \$ 890,000 \\\text { Sales discounts } & 15,000 & 23,000 \\\text { Purchases } & 500,000 & 600,000 \\\text { Ending inventory } & 50,000 & 40,000 \\\text { Transportation-in } & 10,000 & 19,000 \\\text { Purchase discounts } & 5,000 & 5.000\end{array}$ Determine the following amounts for Xu,Inc.for 2013:
A)Net cost of inventory purchases
B)Cost of goods available for sale
C)Cost of goods sold
D)Net sales
E)Gross profit ratio
F)Inventory turnover ratio
G)Average days to sell inventory

• A)Net cost of inventory purchases
• B)Cost of goods available for sale
• C)Cost of goods sold
• D)Net sales
• E)Gross profit ratio
• F)Inventory turnover ratio
• G)Average days to sell inventory

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Definitions:

Unamortized Acquisition Differential

The portion of the difference between the acquisition cost of an asset and its carrying value on the balance sheet that has not yet been amortized.

Equity Method

A method of accounting whereby an investor records its investment in an associate company at initial cost and subsequently adjusts the carrying amount of the investment to recognize the investor's share of the earnings or losses of the associate.

Amortization

The gradual reduction of a debt or the allocation of the cost of an intangible asset over a period.

Cost Method

An accounting approach for investments where the investment is recorded at cost, and income is recognized only when dividends are received.