General Purpose Financial Statements (F7)

Question 1

Operating Profit

Answer 1

Sales
- Provision for returns
= Net sales
COGS
- Provision for returns
= Net COGS
Net Sales
- Net COGS
= Gross Profit
- Return processing cost
= Operating profit

Question 2

Other Comprehensive Income

Answer 2

Unrealized G/L on AFS securities
Unrealized G/L on pension costs
Foreign currency translation adjustments
Unrealized G/L on derivative transactions

Question 3

COGM

Answer 3

COGM
+ Beg Fin Goods
- End Fin Goods
= COGS