accounting help needed!!!!!!!please help me?

Question

The merchandise inventory (begining) is 7000
The total cost of merchandise purchased is 32000
Merchandise inventory (ending) is -6600
gross profit is 45600
expenses are 2600
and net income is 43000

How do i figure out what the sales and cost of goods sold are?

Answer 1

Well one problem is that you can't have a negative inventory. Inventory is an asset and always has a debit balance. Your cost of goods sold (COGS) is equal to the beginning inventory plus the merchandise purchased and then subtract the ending inventory. That is the cost of goods sold. Your sales (revenue) should be equal to your gross profit plus the COGS. Your answers should be $32,400 (COGS) and $78,000 (sales).

Answer 2

A will figure it out for you through email if yould like nd show you how i did it if you can answer these questions.

do you have $6,600 worth of merchandise left
or is $6,600 how much inventory you moved?

Did you bring in $45,600 total
or is that how much profit you have after deducting inventory expense?

Gross Sales = total amount of money you collected from customers.

COGS = just the cost of the items you sold

Gross Profit = Gross Sales - COGS

Other expenses = overhead (means you would have had to pay it even if you didnt sell a thing)

Net Income = Gross Profit - Overhead (what should be in the bank)

When I first read this i thought I could give you a direct answer to your question but I got thrown at the "gross Profits" sorry. Email me or add on to the question and ill gladly help.

And dont sweat this confusing you - it does everybody for a while. They make it complicated intentionally so you'll hire an accountant.

Answer 3

After some thought, I had to edit this to agree with your first answer

COGS is the cost of everything that you sold.
You started with 7,000 in your inventory
you bought 32,000 more for your inventory
---------
Everything you had costs 39,000 in total

You sold it all except 6,600 which you still have left in inventory
-----------
So, the cost of what you sold =39000 - 6600 =32400 = COGS.
-------------------
gross profit - expenses = net income,
Using algebra: net income + expenses = gross profit
net income = 43000
expenses + 2600
= Gross Profit = 45600, which is true.
----------------------
In this simple business model
all of your income is from Sales
Sales = total income
subtract what your goods cost you before your sold them (cogs)
which leaves you with your profit
So, in a formula that is: Sales - cogs = profit
Using algebra : Sales = profit + cogs
For your business:
gross profit = 45600
add cogs + 32400
----------------------
Sales = 78,000
just like your first answer said

Answer 4

Cost of merchandise sales.
Beg Inv=7,000.00
Purchases=32,000.00
Total Beg. Inv. and receivings=$39,000.00

Ending inv.=6,600.00

Cost of merchandise sold=39,000.00-6,600.00
=$32,400.00

Gross profit=45,600.00

The retail sales calculate to
Cost of goods sold=32,400.00
Add the Gross profit>45,600.00
Retail sales=78,000.00.
That calculates to 58% Markup. Not bad.
Expenses=3%....HUH?
Only 2,600.00 expenses?? (Not even one month wages)
(Are you sure that's not $26,000.00?)

$43,000.00 NET???? WOW.

I want to get into that business.