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  • Bus. Fin. Addt - Poniters

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    kim
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    This document outlines how to calculate key financial metrics. It explains how to compute net sales by taking sales and subtracting sales discounts and returns/allowances. It also describes how to calculate net purchases by starting with purchases, adding freight in, and subtracting purchase discounts and returns/allowances. Finally, it provides the components to determine total administrative expenses and cost of sales, which involves beginning inventory, purchases, ending inventory, and various expense categories.

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    Bus. Fin. Addt.poniters

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    This document outlines how to calculate key financial metrics. It explains how to compute net sales by taking sales and subtracting sales discounts and returns/allowances. It also describes how to calculate net purchases by starting with purchases, adding freight in, and subtracting purchase discounts and returns/allowances. Finally, it provides the components to determine total administrative expenses and cost of sales, which involves beginning inventory, purchases, ending inventory, and various expense categories.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    2 views1 page

    Bus. Fin. Addt - Poniters

    Uploaded by

    kim
    This document outlines how to calculate key financial metrics. It explains how to compute net sales by taking sales and subtracting sales discounts and returns/allowances. It also describes how to calculate net purchases by starting with purchases, adding freight in, and subtracting purchase discounts and returns/allowances. Finally, it provides the components to determine total administrative expenses and cost of sales, which involves beginning inventory, purchases, ending inventory, and various expense categories.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    1.

    How to compute total net sales


    Sales
    Less: Sales Discount
    Less: Sales Return and Allowances
    Net Sales
    2. How to compute total net purchase
    Purchases
    Add: Freight In
    Less: Purchase Discount
    Purchase Return and Allowances
    Net Purchases
    3. How to compute total administrative expenses
    Salaries Expense
    Rent Expense
    Utilities
    Repairs and Maintenance
    Deprecation
    Permit and Licenses
    Total Administrative Expenses
    4. How to compute Cost of Sales?
    Beginning Inventory
    Add: Net Purchases
    Total Goods Available for Sales
    Less, Ending Inventory
    Cost of Sales

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