|Purpose:||(L.O. 1) This exercise will help you to identify the relationships among the components involved in measuring net income for a merchandising company.|
The following information applies to The Sports Shop for 2014:
|Cost of goods sold||388,000|
|Sales commissions expense||107,700|
|Executive salaries expense||100,000|
(a) Compute net sales for 2014.
(b) Compute gross profit for 2014.
(c) Compute total operating expenses for 2014.
(d) Compute net income for 2014.