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Ques 1: What information can a firm obtain from a profit-and-loss statement (in dollars)?
Ans1 : the information that can be obtained from the profit-and-loss statement are:
1) Summary of cost and revenues of the company over a time period
2) Analyze profitability
Ques 2 : Develop a profit-and-loss statement for The Flying Carpet Company, a retail store, based on the following:
Beginning inventory (at cost) $700,000
New merchandise (at cost) 800,000
Ending inventory (at cost) 600,000
Gross sales 2,100,000
Returns and allowances 200,000
Marketing expenses 400,000
General expenses 300,000
Ans 2 : Gross sales: 2,100,000.00
Returns and allowances 200.000
Total sales dedu ...