Copyright

Presented below is financial information for two different companies. Summer Company Winter...

Question:

Presented below is financial information for two different companies.

Summer Company Winter Company
Sales revenue $96,710 $ (d)
Sales returns $ (a) $7,000
Net sales 90,630 103,500
Cost of goods sold 54,920 (e)
Gross profit (b) 45,370
Operating expenses 17,240 (f)
Net income (c) 16,300

a) Determine the missing amounts.

b) Determine the gross profit rates.

Operating Expenses:

The operating expenses is an additional expense other than the cost of the goods which is incurred by the company in doing the business operation of the company. These are expenses that cannot be directly associated to a specific product.

Answer and Explanation:

Net Sales = Sales Revenue - Sales Returns

Gross Profit = Net Sales - Cost of Goods Sold

Net Income = Gross Profit - Operating Expenses

a. $6,080

S...

See full answer below.

Become a Study.com member to unlock this answer! Create your account

View this answer

Learn more about this topic:

Loading...
Operating Expenses: Definition, Formula & Examples

from Introduction to Business: Homework Help Resource

Chapter 22 / Lesson 43
134K

Related to this Question

Explore our homework questions and answers library