Using your accounting knowledge, find the missing amounts in the following separ

Question

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

Explanation / Answer

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

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