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.)

	net sales	beginning Inventory	net purchases	ending inventory	cost of goods sold	gross profit	expenses	net income or loss
A	320,000	76,000	104,000	35,200		175,200	72,000
B	570,000	77,000	270,000		264,000			20,000
C	630,000	180,000		180,000	441,000	189,000	160,000
D	800,000		450,000	135,000		234,000	270,000
E		156,000		210,000	350,000	130,000		(15,000)

Answer 1

Beginning inventory+Net purchases-Ending inventory=COGS

Net sales-COGS=Gross profit

Gross profit-Expenses=Net income/loss

	Net sales	Beginning inventory	Net purchases	Ending inventory	COGS	Gross profit	Expenses	Net income
A	320,000	76000	104000	35200	144,800	175200	72000	103200
B	570,000	77000	270,000	83000	264000	306,000	286,000	20000
C	630,000	180,000	441,000	180,000	441,000	189000	160,000	29000
D	800,000	251000	450,000	135000	566,000	234000	270,000	(36000)(negative)
E	480,000	156000	404,000	210,000	350,000	130,000	145,000	(15000)