1. A company has $550,000 in net sales and $193,000 in gross profit. This means its cost of goods sold equals
a. $743,000
b. $550,000
c. $357,000
d. $193,000
e. $(193,000)
2. A company purchased $4,500 of merchandise on May 1 with terms of 2/10, n/30. On May 6, it returned $250 of that merchandise. On May 8, it paid the balance owed for merchandise, taking any discount it is entitled to. The cash paid on May 8 is
a. $4,500
b. $4,250
c. $4,160
d. $4,165
e. $4,410
3. A company has cash sales of $75,000, credit sales of $320,000, sales returns and allowances of $13,700, and sales discounts of $6,000. Its net sales equal
a. $395,000
b. $375,300
c. $300,300
d. $339,700
e. $414,700
4. A company’s quick assets are $37,500, its current assets are $80,000, and its current liabilities are $50,000. Its acid test ratio equals
a. 1.600
b. 0.750
c. 0.625
d. 1.333
e. 0.469
5. A company’s net sales are $675,000, its costs of goods sold are $459,000, and its net income is $74,250. Its gross margin ratio equals
a. 32%
b. 68%
c. 47%
d. 11%
e. 34%