Formulas For Chapter 5 Flashcards
1
Q
Cost of good available for sale
A
Beginning Inventory + cost of goods purchased
2
Q
Cost of goods purchased
A
Purchases - purchase returns and allowances - purchase discounts + freight in
3
Q
Cost of good sold
A
Beginning inventory + cost of goods purchased - ending inventory
4
Q
Net sales
A
Sales revenue - sales return and allowances - sales discount
5
Q
Gross profit
A
Net sales - cost of goods sold
6
Q
Income from operations
A
Gross profit - operating expense
7
Q
Gross profit rate
A
Gross profit / net sales
8
Q
Profit margin
A
Net income / net sales
