Question

In: Accounting

This exercise stresses the relationships between the information recorded in a periodic inventory system and the...

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)

Solutions

Expert Solution

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)

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