(SOLVED) Multiple Choice Questions 1 The income statement for Feel Good


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Multiple Choice Questions1. The income statement for Feel Good Health Foods shows gross profit of $151,000, operating expenses of $126,000, and cost of goods sold of $215,000. What is the amount of net sales revenue?a. $277,000b. $366,000c. $492,000d. $341,0002. The word market as used in the lower of cost or market generally meansa. retail market price.b. Replacement cost.c. Retail market price.d. Liquidation price.3. The sum of (a) ending inventory and (b) cost of goods sold isa. Beginning inventory.b. Goods available.c. Net purchases.d. Gross profit.4. The following data come from the inventory records of Draper Company:Net sales revenue………………………………….. $623,000Beginning inventory ……………………………… 64,000Ending inventory………………………………….. 45,000Net purchases………………………………………. 460,000Based on these facts, the gross profit for Draper Company isa. $130,000.b. $163,000.c. $134,000.d. Some other amount.5. Eleanor Barker Cosmetics ended the month of May with inventory of $25,000. Eleanor Barker expects to end June with inventory of $12,000 after cost of goods sold of $102,000. How much inventory must Eleanor Barker purchase during June in order to accomplish these results?a. $89,000b. $114,000c. $115,000d. Cannot be determined from the data given6. Two financial ratios that clearly distinguish a discount chain such as Kmart from a high-end retailer such as Saks Fifth Avenue are the gross profit percentage and the rate of inventory turnover. Which set of relationships is most likely for Saks Fifth Avenue? Gross profit percentage Inventory turnovera. High Lowb. High Highc. Low Lowd. Low High

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