Question

This exercise stresses the relationships between the information recorded in a periodic inventory system and the basic elements of an income statement. Each of the five lines represents a separate set of information. You are to fill in the missing amounts. (Enter loss amounts as a negative number.)

Not necessarily looking for the answer but trying to find out the calculations of net sales, ending inventory, exepenses, and net income or (loss). Thanks!

Answer 1

The Values can be calculated as follows:

Net Sales = Total Sales - Sales returns and allowances - Cash discount given

Ending Inventory = Beginning Inventory + Purchases - Cost of Goods Sold

Expenses = All expenses incurred in Business - Operating Expenses and Non operating expenses

Net Income or (Loss) = Net Sales - Cost of Goods Sold - All operating expenses - Non Operating Expenses + Non Operating Income