Question

Supply the missing dollar amounts for each of the following independent cases 

Answer 1

Cases	Sales revenue	Beginning inventory	Purchases	Total vailable (Cost of goods available for sale)	Ending inventory	Cost of goods sold	Gross profit	Selling and general expenses	Income from operations
A	$5,600	$1,700	$300	$2,000 (1)	$100	$1,900 (2)	$3,700 (3)	$600	$3,100 (6)
B	1,870	1,170	1,500	2,670 (1)	1750	920 (6)	950 (3)	$550	400
C	2,370 (3)	900	1,100 (4)	2,000 (1)	1,000	1,000	1,370	$950	420 (6)
D	1,940	370 (5)	1,520	1,890 (1)	1,100	790 (6)	1,150 (3)	$650	500

(Note: Formula numbers are mentioned in the missing amount boxes)

Formulas for missing amounts are given below:

(1) Cost of goods available for sale = Beginning value of inventory + the cost of goods purchased (Purchases)

(2) Cost of goods sold = The cost of goods available for sale - ending inventory.

(3) Gross profit = Sales revenue - Cost of goods sold

(4) Purchases = Cost of goods sold + (Ending inventory-beginning inventory)

(5) Ending inventory = Beginning Inventory + Net Purchases - Cost of Goods Sold (or COGS)

(6) Net Income from operations = Revenue – COGS – Expenses