In: Accounting
Using your accounting knowledge, find the missing amounts in the following separate income statements. (Amounts to be deducted should be indicated by a minus sign.)
a | b | c | d | e | |
Sales | $62,000 | $43,500 | $46,000 | fill in blank | $25,600 |
Cost of goods sold | |||||
Merchandise inventory (beginning) | 8,000 | 17,050 | 7,500 | 8,000 | 4,560 |
Total cost of merchandise purchases | 38,000 | fill in blank | fill in blank | 32,000 | 6,600 |
Merchandise inventory (ending) | (11,950) | (3,000) | (9,000) | (6,600) | (4,160) |
Cost of goods sold | 34,050 | 16,000 | fill in blank | fill in blank | 7,000 |
Gross profit | 27,950 | fill in blank | 3,750 | 45,600 | 18,600 |
Expenses | 10,000 | 10,650 | 12,150 | 3,600 | 6,000 |
Net income (loss) | $17,950 | $16,850 | $(8,400) | $42,000 | $12,600 |
Answer:
Cost of goods sold = Merchandise Inventory, Beginning + Cost of
Merchandise Purchases – Merchandise Inventory, Ending
Gross Profit = Sales – Cost of Goods sold
Net income (Loss) = Gross Profit - Expenses
Case B:
Cost of goods sold = Merchandise Inventory, Beginning + Cost of
Merchandise Purchases – Merchandise Inventory, Ending
$16,000 = $17,050 + Cost of Merchandise Purchases - $3,000
$16,000 = $14,050 + Cost of Merchandise Purchases
Cost of Merchandise Purchases = $1,950
Gross Profit = Sales – Cost of Goods sold
Gross Profit = $43,500 - $16,000
Gross Profit = $27,500
Case C:
Gross Profit = Sales – Cost of Goods sold
$3,750 = $46,000 – Cost of Goods sold
Cost of Goods sold = $42,250
Cost of goods sold = Merchandise Inventory, Beginning + Cost of
Merchandise Purchases – Merchandise Inventory, Ending
$42,250 = $7,500 + Cost of Merchandise Purchases - $9,000
$42,250 = Cost of Merchandise Purchases - $1,500
Cost of Merchandise Purchases = $43,750
Case D:
Cost of goods sold = Merchandise Inventory, Beginning + Cost of
Merchandise Purchases – Merchandise Inventory, Ending
Cost of Goods sold = $8,000 + $32,000 - $6,600
Cost of Goods sold = $33,400
Gross Profit = Sales – Cost of Goods sold
$45,600 = Sales - $33,400
Sales = $79,000