Dells Company uses the periodic inventory system. Sales for 2019 were $1,410,000 while operating expenses were $525,000. Beginning and ending inventories for 2019 were $210,000 and $180,000, respectively. Net purchases were $540,000 while freight in was $45,000.
The net income or loss for 2019 was:

Question

Quizplus · Accepted Answer

Cost of Goods Sold = Beginning Inventory + Purchases + Freight - Ending Inventory
X = $210,000 + $540,000 + $45,000 - $180,000
X = $615,000 = Cost of Goods Sold
Sales - Cost of Goods Sold - Operating Expenses = Net Income
$1,410,000 - $615,000 - $525,000 = X
X = $270,000 = Net Income

Dells Company Uses the Periodic Inventory System