#1 merchandising

A retailer purchased a batch of merchandise for 5,000. Additional costs for transportation and handling amounted to 500. If the retailer expects to sell the merchandise for 8,000, what is the gross profit margin as a percentage?

• 37.5

• 60

• 62.5

• 40

A merchandising company purchases inventory for $10,000 on account with credit terms of 2/10, net 30. What is the amount due if the company pays within the discount period?

• $10,000

• $9,800

• $9,600

• $9,000

A retailer sells goods for $10,000 cash, which includes sales tax of 6%. What is the amount of the sales tax collected by the retailer?

• $600

• $500

• $560

• $540

A company's beginning inventory is $20,000, purchases during the period total $30,000, and the ending inventory is $15,000. What is the cost of goods sold (COGS)?

• $35,000

• $25,000

• $30,000

• $20,000

If a company's net sales are $50,000, sales discounts are $1,000, and sales returns and allowances are $2,000, what is the company's net sales revenue?

• $53,000

• $49,000

• $47,000

• $48,000

A company's income statement reports net sales of $100,000, cost of goods sold of $60,000, and operating expenses of $20,000. What is the company's gross profit?

• $40,000

• $80,000

• $20,000

• $100,000

A company's beginning inventory was $50,000. During the period, it made purchases totaling $100,000 and had ending inventory of $70,000. If the company's cost of goods sold (COGS) was $80,000, what was its gross profit?

• $70,000

• $90,000

• $60,000

• $110,000

A retailer purchased inventory for $20,000 on credit. The credit terms are 2/10, net 30. If the retailer pays within the discount period, what is the amount paid?

• $20,000

• $19,600

• $19,400

• $18,800

A company's net sales for the period were $150,000. Beginning accounts receivable were $20,000, and ending accounts receivable were $25,000. If the company collected $130,000 in cash during the period, what were its sales on credit?

• $120,000

• $140,000

• $135,000

• $125,000

A company's income statement reports net income of $50,000. Beginning retained earnings were $100,000, and the company declared and paid dividends of $20,000 during the period. What were the ending retained earnings?

• $70,000

• $130,000

• $130,000

• $100,000