Referring to the following table, what is the Net income? Sales revenue $460,000 Cost of goods sold $300,000 Operating expenses $85,000 Sales discounts $ 20,000 Sales returns and allowances $15,000 Interest revenue $5,000 $180,000 $35,000 $60,000 $45,000 Andy company had gross sales of $35,500 and sales return of $450. The cost of good sold is %35,000% of gross sales, gross profit percentage will be? based on $35,050 65% 35% Based on $35,950 A company purchase 100 units for $20 each on January 31. It purchase 100 units for $30 on February 28. It sold 150 units for $45 each from March 1 through December 31. If the company uses the Last- In, First-out inventory costing method, what is the amount of cost of goods sold on the December 31 income statement? $3500 $4,000 $6750 $3750 On December 31 of the current year, the trial balance for a company reports the following amounts: Cost of goods available for sale $1,074,450 Ending inventory (First-in, First-out) Replacement cost of ending inventory $ 91,730 What amount must be reported for cost of goods sold on the income statement? $ 1,074,450 $897,290 $989,020 $982,720 An audit of Forever Young Cosmetics reveals that beginning inventory was understated by $3,000. Which of the following will result from the correction of this error? Net income will be reduced by $3,000 Cost of goods sold will be reduced by $3,000 Gross profit will be increased by $ 3,000 Both B and C Owens Janitor Supply has the following account balances at the end of the current accounting period. Beginning inventory $50,000 Net purchases $400,000 Net sales revenue $500,000 A normal gross profit percent is 40%. What is the estimated ending inventory as determined by the gross profit? $200,000 $150,000 $50,000 $300,000 Which of the following is a requirement of the Sarbanes-Oxley Act? Public companies oversee the work of auditors of the other public companies The outside auditor must issue an internal control report for each public company, and the Public company oversight board evaluates the clients internal controls. The public company oversight board issues an internal control audit report for every publicly held company. Accounting firms may not both audit a public client and also provide certain consulting services for the same client. Which of the following describes the internal control component ( “risk assessment”)? Risk assessment is designed to ensure that the business goals are achieved Risk assessment is the “tone at the top” of the business. Internal auditors monitor company controls to safeguard assets, and external auditors monitor the controls to ensure that the accounting records are accurate A company must identify its risks Which of the following is retained by the customer as proof of a deposit transaction? A signature card A cancelled check A bank reconciliation A deposit receipt The following is from the 2010 records of Armadillo Camera Shop: Accounts receivable, December 31, 2010 Allowance for uncollectible accunts, December 31, 2010 prior to adjustment Net credit sales for 2010 Accounts written off as uncollectible during 2010 Cash sales during 2010 Uncollectible accounts expense is estimated by the percent-of-sales method. Management estimates that 3% of net sales will be uncollectible, Which of the following will be the amount of net accounts receivable after adjustments? 16,550 13,000 17,750 17,150 A company uses the direct write-off method to account for uncollectible receivables . Which of the following is included in the entry to write off an uncollectible account? A credit to the Allowance for uncollectible accounts No entry is made to write off uncollectible accounts A credit to the customers account receivable A debit to allowance for uncollectible accounts