1. Each member of the team is to assume responsibility for computing one of the following items. You are not to duplicate your teammate 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.
a. Net sales
b. Total cost of merchandise purchases
c. Cost of goods sold
d. Gross profit
e. Net income
2. Check your net income with the instructor. If correct, proceed to step 3.
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.