Question

Consider the following partially completed income statements for merchandising companies and compute the missing amounts: (Click the icon to view the Income Statements.) Data Table Fit Apparel Laura's Bakery $ 99,000 Fit Apparel Laura's Bakery 99,000 32,000 $ (d) 48,000 Net Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory Purchases and Freight In Cost of Goods Available for Sale Ending Merchandise Inventory Cost of Goods Sold Gross Profit Selling and Administrative Expenses Net Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory 88,000 (2,000) 32,000 (e) 48,000 (2,000) 63,000 (6) 88,000 (2,000) 36,000 (2,000) 112,000 86,000 Purchases and Freight In Cost of Goods Available for Sale Ending Merchandise Inventory Cost of Goods Sold Gross Profit Selling and Administrative Expenses 63,000 14.000 Operating Income 36,000 112,000 86,000 14,000 Operating Income $ Print Done

Answer 1

	Laura Bakery	Fit Apparel
Net Sales Revenue	99000	198000
Cost of Goods sold
Beginning Merchandise Inventory	17000	32000
Purchase and Freight in	48000	56000
Cost of goods available for sales	65000	88000
Ending Merchandise	-2000	-2000
Cost of goods sold	63000	86000
Gross Profit	36000	112000
Selling and Administrative expense	22000	86000
Operating Income	14000	26000

Gross Profit = Sales - Cost of Goods sold

Sales =Cost of goods sold + Gross Profit

Cost of goods available for sales =Beginning Merchandise Inventory + Purchase and Freight in

Operating Income=Gross profit - Selling and Administrative expense

	Laura Bakery	Fit Apparel
Net Sales Revenue	99000	=112000+86000
Cost of Goods sold
Beginning Merchandise Inventory	=65000-48000	32000
Purchase and Freight in	48000	=88000-32000
Cost of goods available for sales	=63000+2000	88000
Ending Merchandise	-2000	-2000
Cost of goods sold	63000	=88000-2000
Gross Profit	36000	112000
Selling and Administrative expense	=36000-14000	86000
Operating Income	14000	=112000-86000