Accounting – Unit 3: AccountsAccounting | Page 45. A business can earn revenue by making cash and credit sales, differentiate betweena cash sale and a credit sale.Cash saleCredit sale6. State the formula to calculate profit and/or loss.7. A business made a sale for $100 and the cost of goods was $60. Calculate the grossprofit for the business and using the definition of an expense, explain why the cost ofgoods sold will be treated as an expense.Answer:

A company reports net income of $52,100, which included depreciation expense of $45,200; amortization expense of $22,400; and a loss from sale of equipment of $14,200. Its comparative balance sheet shows the following changes: accounts receivable increased $32,400; inventory decreased $14,200; prepaid insurance decreased $9,200; and accounts payable increased $13,700.Compute net cash provided by operating activities using the indirect method.

Profit will result if gross profit exceeds: Group of answer choices cost of sales. operating expenses. purchases. cost of goods sold plus operating expenses.

You've been provided with the following information about a businessComplete a horizontal analysis for the "Cost of sales" account. Round the percentage change to one decimal place (1 mark).Note: Do not enter the "%" symbol when entering your answer. For example if your answer is "5.1%", only enter "5.1".Profit and loss statement Current year Prior yearRevenue 15000 10000Less Cost of sales 6500 3000Gross profit 8500 7000Less expenses Marketing Expense 2000 1800Rent Expense 1500 1500Wages Expense 800 1000Utilities Expense 1500 1500Net profit 2700 1200

Identify the different names given to the income statement.Define each of the following terms and, where relevant, write down the mathematical equation that would help in calculating the figure.SalesCost of goods soldGross profitNet profitCalculate the cost of goods sold (COGS), given the following information:  $Sales 700 000Stock (opening) 100 000Purchases of stock 400 000Closing stock 50 000Using the figures from question 3, calculate gross profit.Using your workings from questions 3 and 4, calculate the value of net profit (or loss) if expenses for the period totalled $80 000.Anita Toparis owns and operates Petal’s Florist. Last year Anita had a sales revenue of $285 000. Her cost of goods sold totalled $115 000. Her operating expenses were: electricity $5000, advertising $11 000, interest charges $5000, salaries $62 000 and rent $25 000. Construct an income statement (statement of financial performance) for Anita and tell her whether she has made a net profit.Distinguish between selling, administrative and financial expenses, giving examples for each.Explain how an income statement can provide useful information to a business and its stakeholders.

If a company's Sales revenue figure is 345,000  and its Gross profit has been calculated has 90,000. Also the figure for other expense has been determined as 63,000What is the figure for Cost of Sales?