Waukesha Company has gross sales of 160% of cost of goods sold. It has also provided the following information for the calendar year 2003:
|
Inventory balance, January 1, 2003. |
100,000 |
|
Total cost of goods available for sale |
300,000 |
|
Sales returns |
13,000 |
|
Purchase returns. |
5,000 |
|
Freight in. |
2,000 |
|
Sales (net of returns) |
407,000 |
|
Operating expenses |
$27,000 |
Using the available information, compute the following. (Ignore income taxes.)
Required
1. Gross sales for 2003.
2. Net purchases and gross purchases for 2003.
3. Cost of goods sold for 2003.
4. Inventory balance at December 31, 2003.
5. Gross margin for 2003.
6. Net income for 2003.