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30 Sep 2019
Net income will result if gross profit exceeds
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Cost of goods sold.
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Operating expenses.
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Purchases.
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Direct Expenses.
Net income will result if gross profit exceeds
-
Cost of goods sold.
-
Operating expenses.
-
Purchases.
-
Direct Expenses.
Irving HeathcoteLv2
12 Apr 2019
Related questions
The income statement of Vince Gill Company is shown below.
| Vince Gill Company | ||
| Income Statement | ||
| For year ended December 31, 2014 | ||
Sales Revenue | $6,947,090 | |
| Cost of Goods Sold | ||
| Beginning inventory | $1,890,710 | |
| Purchases | 4,323,810 | |
| Goods available for sale | 6,214,520 | |
| Ending inventory | 1,601,450 | |
| Cost of goods sold | 4,613,070 | |
| Gross Profit | 2,334,020 | |
| Operating expenses | ||
| Selling expenses | 446,970 | |
| Admin expenses | 709,920 | 1,156,890 |
| Net income | 1,177,130 | |
| 1. | Accounts receivable decreased $316,040 during the year. | |
| 2. | Prepaid expenses increased $175,400 during the year. | |
| 3. | Accounts payable to suppliers of merchandise decreased $283,580during the year. | |
| 4. | Accrued expenses payable decreased $115,830 during theyear. | |
| 5. | Administrative expenses include depreciation expense of$54,760. |
Prepare the operating activities section of the statement ofcash flows using the direct method.
