Official Brands's general ledger and supplementary records at the end of its current period reveal the following.
Required
Each member of the team is to assume responsibility for computing one of the following items. You are not to duplicate your teammates' work. Get any necessary amounts to compute your item from the appropriate teammate. Each member is to explain his or her computation to the team in preparation for reporting to the class.
Net sales
Total cost of merchandise purchases
Cost of goods sold
Gross profit
Net income Check your net income with the instructor. If correct, proceed to step 3.
Assume that a physical inventory count finds that actual ending inventory is $76,000. Discuss how this affects previously computed amounts in step 1.
Point: In teams of four, assign the same student a and e. Rotate teams for reporting on a different computation and the analysis in step 3.
