Question

Determining Amounts for Items Omitted from Income Statement

One item is omitted in each of the following four lists of income statement data. Determine the amounts of the missing items.

		Chase Company	Jessup Inc.	Osterman Company	Snyder Co.
Sales		$463,200	$	$1,077,000	$
Cost of goods sold		$	$408,400	$	$411,800
Gross profit		$87,800	$290,600	$295,400	$266,400

Answer 1

SOLUTION-

formula-

sales - cost of goods sold = gross profit

1)CHASE COMPANY

cost of goods sold= sales - gross profit= $463,200-$87,800=$3,75,400

2)JESSUP INC.

sales= cost of goods sold + gross profit= $408,400+$290,600=$699,000

3)OSTERMAN COMPANY

cost of goods sold= sales - gross profit= $1,077,000-$295,400=$781,600

4)SYNDER CO.

sales= cost of goods sold +gross profit=$411,800+$266,400=$678,200