Question

In: Accounting

2014 2015 Sales $200,000 $150,000 Beginning inventory (a)______ (e)_______ Purchases, net 40,000 40,000 Ending inventory 25,000...

2014 2015

Sales $200,000 $150,000

Beginning inventory (a)______ (e)_______

Purchases, net 40,000 40,000

Ending inventory 25,000 5,000

Cost of goods sold (b)______ 60,000

Gross profit 65,000 (f)______

Operating expenses (c)______ (g)_______

Income before taxes (d)______ 40,000

Income tax expense (30%) 14,100 (h)_______

Net income (loss) 32,900 (i)________

Can you add your work for each missing blank please!

Required: Fill in the blanks for the missing data.

Solutions

Expert Solution

Answer:

2014

2015

Sales

200,000

150,000

Beginning Inventory

a

120,000

e

25,000

Purchase

40,000

40,000

Ending Inventory

25000

5000

Cost of goods sold

b

135,000

60,000

Gross profit

65000

f

90,000

Operating expenses

c

18000

50,000

Income before taxes

d

47000

g

40,000

Income tax expense (30%)

14100

h

12000

Net income (loss)

32900

i

28,000

Working notes for the above answer:

(b)

Cost of goods sold

=Sales-gross profit

=200,000-65,000

=$135,000

_________

(a)

Begining Inventory

=Cost of goods sold+ ending Inventory- purchase

=135,000+25,000-40,000

=120,000

_______________________

(D)

Income before taxes   

= Income tax expense / 30%

=14100/30%

=470,000

____________________

(C)

Operating expenses

= Gross profit- Income before taxes

=65,000-47,000

=18,000

________________________________________________________

  (e)

Beginning Inventory

=Cost of goods sold+ ending Inventory- purchase

=60,000+5000-40,000

=25,0000

________________

(f)

Gross Profit

=Sales-cost of goods sold

=90,000

_________________

(g)

Operating expenses

= Gross profit- Income before taxes

=90,000-40,000

=50,000

__________________

(h)

Income tax expense (30%)

= Income before taxes*30%

=40,000*30%

=12,000

___________________

(i)

Net income (loss)

= Income before taxes- Income tax expense (30%)

=40,000-12,000

=28,000

ekkarill92 answered 2 years ago
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