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The following information is for Beck Company. What is purchases and gross profit? Net sales = $140,000 Ending inventory = $11,000 Beginning Inventory = $8,000 Cost of goods sold = $80,000

User Joelty
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Final answer:

The student's question involved calculating the purchases and gross profit for Beck Company. Purchases were found to be $83,000, calculated as the sum of Cost of Goods Sold and Ending Inventory minus Beginning Inventory. The gross profit was calculated as Net Sales minus Cost of Goods Sold, amounting to $60,000.

Step-by-step explanation:

The student is asking for the calculation of purchases and gross profit for Beck Company using given financial information that includes net sales, ending inventory, beginning inventory, and the cost of goods sold. To calculate purchases, we use the formula:

Purchases = Cost of Goods Sold + Ending Inventory - Beginning Inventory

Plugging in the given numbers:

Purchases = $80,000 + $11,000 - $8,000 = $83,000

To calculate gross profit, we subtract the cost of goods sold from net sales:

Gross Profit = Net Sales - Cost of Goods Sold

Gross Profit = $140,000 - $80,000 = $60,000

Thus, the purchases are $83,000 and the gross profit is $60,000 for Beck Company.

User Roberto Aureli
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