Sleep Sack Had Net Sales of $650,500,its Cost of Goods

question 311

True/False

Sleep Sack had net sales of $650,500,its cost of goods sold was $357,000,and its net income was $13,750.The gross margin ratio was 45.1%.

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Definitions:

Income Summary Account

A temporary ledger account used to transfer the balances of all revenue and expense accounts at the end of an accounting period to determine the net income or loss.

Proprietorship

A business owned and operated by a single individual, with no legal distinction between the owner and the business entity.

Expenses

Expenses are the costs incurred in the process of generating revenue, including operational costs, salaries, and utility expenses, critical for determining a company's net income.

Revenues

The total income generated by a company from its activities, before any expenses are deducted.