Question

Using your accounting knowledge, find the missing amounts in the following separate income statements a through e. (Amounts in parentheses do not require a minus sign in front of them. Input all amounts as positive values. Omit the "$" sign in your response.) 56,000 $ 39,648 $ 36,400 $ 22,008 Sales Cost of goods sold Merchandise inventory (beginning) Total cost of merchandise purchases Merchandise inventory (ending) 3,211 7,644 2,267 7,935 5,320 31,920 ) 6,698 30,610 (6,323) C (4,011) (9,144) Cost of goods sold 31,420 12,368 7,785 Gross profit Expenses 6,232 13,960 9,000 10,650 6.100 41,815 2,600 39,215 $ Net profit (loss) 16,630 $ (7.728) $ S

Answer 1

working:

a.merchandise inventory ending =total purchases+merchandise inventory- cost of goods sold

=>31,920+5320-31,420

=>5820

gross profit =sales - cost of goods sold

=>56,000- 31,420

=>24,580.

net profit = gross profit - expenses

=>24,580-9000

=>$15,580.

b.

total cost of merchandise purchases =cost of goods sold +ending inventory -beginning inventory

=>12,368+4011-3211

=>13,168.

gross profit =sales - cost of goods sold

=>39,648-12,368

=>27,280.

c.

first we should know cost of goods sold.

cost of goods sold = sales -gross profit

=>36,400-6232

=>30,168.

total merchandise purchases =cost of goods sold + ending inventory -beginning inventory

=>30,168+9144-7644

=>31,668.

d.

first we shall know cost of goods sold

cost of goods sold =beginning inventory + cost of purchases -ending inventory

=>6698+30610-6323

=>$30,985.

sales =gross profit + cost of goods sold

=>41,815+30,985

=>$72,800.

e.

ending inventory =beginning inventory +cost of purchases- cost of goods sold

=>2267+7935-7785

=>2417.

gross profit =sales - cost of goods sold

=>22,008-7785

=>14,223.

net profit = gross profit -expenses

=>14,223-6100

=>$8,123.