Net sales revenue and cost of goods sold


Problem: Les Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E")

Purchases.....................

E250,000

 

Freight In..................

E8,000

Sales discounts.............

4,000

 

Purchase returns........

7,000

Inventory

 

 

Sales......................

400,000

December 31, 20X1.....

20,000

 

Purchase discounts....

3,000

December 31, 20X2.....

30,000

 

Sales returns.............

8,000

Administrative Expenses

20,000

 

 

 

Balance Sheet - December 31, 20X1

Cash                      10,000     
Inventory                20,000     
Owner's Equity         30,000

Compute the following for Les Fleurs during 20X2: (Do not convert the figures to US dollars.)

1. Net sales revenue

2. Cost of goods sold

3. Gross profit

4. Net income

5. Balance sheet, December 31, 20X2

6. Statement of Owner's Equity, December 31, 20X2

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Accounting Basics: Net sales revenue and cost of goods sold
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