Question

 

Financial information follows for four different companies:

	Ace Consulting Inc.	Brrrr Freezers Corp.	Capital Consumer   Inc.	Death Star Ltd.
Sales Revenue	$98,000	(c)	$144,000	$120,000
Sales Returns and Allowances	(a)	$  5,000	12,000	9,000
Net Sales Revenue	74,000	101,000	132,000	(g)
Beginning Inventory	21,000	(d)	44,000	24,000
Purchases	63,000	105,000	(e)	90,000
Returns and Allowances	6,000	10,000	8,000	(h)
Ending Inventory	(b)	48,000	30,000	28,000
Cost of Goods Sold	64,000	72,000	(f)	72,000
Gross Profit	10,000	29,000	18,000	(i)

 

Required

1.      Determine the missing amounts for parts (a) to (i). Show all calculations.

 

Answer 1

 

1.sales-sales return and allowances = net sales

2.Beginning inventory+purchase-ending inevntory-returns = cost of goods sold

3. net sales-cost of goods sold = Gross profit

	Ace Consulting Inc.	Brrrr Freezers Corp.	Capital Consumer   Inc.	Death Star Ltd.
Sales Revenue	$98,000	$106,000 (c)	$144,000	$120,000
Sales Returns and Allowances	$24,000 (a)	$  5,000	12,000	9,000
Net Sales Revenue	74,000	101,000	132,000	$111,000(g)
Beginning Inventory	21,000	$25,000(d)	44,000	24,000
Purchases	63,000	105,000	$108,000(e)	90,000
Returns and Allowances	6,000	10,000	8,000	$14,000 (h)
Ending Inventory	$14,000 (b)	48,000	30,000	28,000
Cost of Goods Sold	64,000	72,000	$114,000(f)	72,000
Gross Profit	10,000	29,000	18,000	(i)39,000

(a) sales- returns = net sales

$98,000-returns = $74,000

returns = 24,000

(b) .Beginning inventory+purchase-ending inevntory-returns = cost of goods sold

$21,000+$63,000-$6,000-$ending inventory = $64,000

Ending inventory = $26,000

(c) sales- returns = net sales

sales-$5000=$101,000

sales=$106,000

(d) Beginning inventory+purchase-ending inevntory-returns = cost of goods sold

beginning +$105,000-$10,000-$48,000=$72,000

beginnging=$25,000

(f)net sales-cost of goods sold = Gross profit

$132,000-cogs=$18,000

COGS= $114,000

(e)Beginning inventory+purchase-ending inevntory-returns = cost of goods sold

$44,000+purchase-$30,000-$8,000=$114,000

purchase=$108,000

(g) sales- returns = net sales

$120,000-9,000

=111,000

(i) sales-cost of goods sold= GP

=$111,000-$72,000

=$39,000

(h)

Beginning inventory+purchase-ending inevntory-returns = cost of goods sold

$24,000+90,000-returns-$28,000=72,000

=$14,000