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Cordell Distributing Company completed these merch...

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Cordell Distributing Company completed these merchandising transactions in the month of April. At the beginning of April, the ledger of Cordell showed Cash of $9,000 and Common Stock of $9,000. Apr. 2 Purchased merchandise on account from Lang Supply Co. $8,300, terms 2/10, n/30. 4 Sold merchandise on account $6,000, terms 2/10, n/30. The cost of the merchandise sold was $3,700. 5 Paid $200 freight on April 4 sale. 6 Received credit from Lang Supply Co. for merchandise returned $300. 11 Paid Lang Supply Co. in full, less discount. 13 Received collections in full, less discounts, from customers billed on April 4. 14 Purchased merchandise for cash $4,700. 16 Received refund from supplier for returned merchandise on cash purchase of April 14, $500. 18 Purchased merchandise from Great Plains Distributors $5,500, terms 2/10, n/30. 20 Paid freight on April 18 purchase $100. 23 Sold merchandise for cash $8,300. The cost of the merchandise sold was $5,820. 26 Purchased merchandise for cash $2,300. 27 Paid Great Plains Distributors in full, less discount. 29 Made refunds to cash customers for returned merchandise $180. The returned merchandise had a cost of $120. 30 Sold merchandise on account $3,980, terms n/30. The cost of the merchandise sold was $2,500. I just need the folllowing answered Calculate the profit margin ratio and the gross profit rate. (Assume operating expenses were $2,050). Gross profit is $6,080

 

Paper#9753 | Written in 18-Jul-2015

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