elected accounts from the accounting records of Northern Windows had the balances shown below at December 31 , 023. Northern Windows uses the periodic inventory system.
i. (Click the icon to view the accounts.)
equired
Show the computation of Northern Windows' net sales, cost of goods sold, and gross margin for the year ended December 31, 2023.
2. Sal Namrata, the proprietor of Northern Windows, strives to earn a gross margin percentage of 25 percent. Did he achieve this goal?
3. Did the rate of inventory turnover reach the industry average of 3.8 times per year?
Begin by determining net sales, and then continue with the calculation through to cost of goods sold and finally gross margin.
Purchases
Selling Expenses
Fumiture and Fitures
Purchase Returns and Allowances
Salaries Payable
Sales Revenue
Sales Returns and Allowances
Inventory:
December 31.2022
Inventory. Desember 31, 2023
Acoounts Pavable
Accounts Receivable
Cash
Freightin
Aocumulated Amortization.-Furniture and Fixtures
Paronase Discounts
Salas Discounts
Ganarai Expenses
Amorazatión t xoenso fumitaro and Feuros
S. Namrata, Capita
S. Namirata. Vidarawals
180.000
10.000
40,000
1.000
1.500
205.000
1,900
36.000
37.000
9.000
15.000
3.500
1.400
16.000
4.500
1.600
22.000
4.000
81.500
20.500
Answer
Final Answer: The net sales for Northern Windows for the year ended December 31, 2023 is \(\boxed{203100}\). The cost of goods sold is \(\boxed{180100}\). The gross margin is \(\boxed{23000}\)
Step 1 ：Calculate net sales by subtracting sales returns and allowances from sales revenue: \(205000 - 1900 = 203100\)
Step 2 ：Calculate cost of goods sold (COGS) by starting with the beginning inventory, adding purchases and freight-in, subtracting purchase returns and allowances and purchase discounts, and then subtracting the ending inventory: \((36000 + 180000 + 3500 - 1000 - 1400) - 37000 = 180100\)
Step 3 ：Calculate gross margin by subtracting COGS from net sales: \(203100 - 180100 = 23000\)
Step 4 ：Final Answer: The net sales for Northern Windows for the year ended December 31, 2023 is \(\boxed{203100}\). The cost of goods sold is \(\boxed{180100}\). The gross margin is \(\boxed{23000}\)
