Stout Company has gross sales of 250% of cost of goods sold. It has also provided the following information for the calendar year 2012:
Inventory balance, January 1, 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 22,000
Total cost of goods available for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . 84,000
Sales returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,200
Purchase returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000
Freight in . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800
Sales (net of returns) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169,800
Operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,500
Required:
Using the available information, compute the following. (Ignore income taxes.)
1. Gross sales for 2012
2. Net purchases and gross purchases for 2012
3. Cost of goods sold for 2012
4. Inventory balance at December 31, 2012
5. Gross margin for 2012
6. Net income for 2012