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The document contains three questions requiring the construction of income statements and cost of goods sold statements for different companies based on provided financial data. The first question is about Star Co. Ltd. for the year 1997, the second about Blue Spring Company for 2005, and the third about ABC Nurseries for 2007, including calculations for net profit and gross profit ratio. Each question provides specific figures for sales, expenses, and inventory that need to be processed into financial statements.

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33 views1 page

Questions

The document contains three questions requiring the construction of income statements and cost of goods sold statements for different companies based on provided financial data. The first question is about Star Co. Ltd. for the year 1997, the second about Blue Spring Company for 2005, and the third about ABC Nurseries for 2007, including calculations for net profit and gross profit ratio. Each question provides specific figures for sales, expenses, and inventory that need to be processed into financial statements.

Uploaded by

FaizSheikh
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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QUESTIONS

Q1) Make an income statement from the following data or the year December 1997 of Star Co. Ltd.

Cost of goods sold $50000

Sales 112000

Sales return 12000

Expenses included selling expenses $5000, marketing expenses 2000 and general and administrative
expensive2000.

Q2) The data for Blue spring company for the year 2005 is given below. You are required to make a Cost
of goods sold statement and income statement both from t.

Opening inventory $64504

Transportation 6248

Purchases 258071

Sales 405240

Purchases return 15730

Sales return 20196

Ending inventory 62814

Operating expenses include advertising expenses $11275, Delivery expenses 14010 and utilities
expenses 8860 respectively.

Q3) Construct an income statement using the following information of ABC Nurseries for the year 2007.

Sales $320000

Selling expenses 40000

General & administrative expenses 16000

Cost of goods sold 240000

And also calculate the net profit and gross profit ratio from the above data.

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