Question

Presented here are the components in Sheridan Company’s income statement.

Determine the missing amounts.

		Sales Revenue			Cost of Goods Sold			Gross Profit			Operating Expenses			Net Income
Year 1		$ 74,640			$Enter a dollar amount for year 1	(b)		$ 31,300			$Enter a dollar amount for year 1	(d)		$13,940
Year 2		$109,800			$73,200			$Enter a dollar amount for year 2	(c)		$Enter a dollar amount for year 2	(e)		$30,340
Year 3		$Enter a dollar amount for year 3	(a)		$74,560			$110,510			$48,080			$Enter a total net income for year 3	(f)

Answer 1

Sales Revenue - Cost of Goods sold = Gross Profit
Gross Profit - Operating Expenses = Net Income
	Sales Revenue	Cost of Goods Sold	Gross Profit	Operating Expenses	Net Income
Year 1	74,640	43,340	31,300	17,360	13,940
Year 2	109,800	73,200	36,600	6,260	30,340
Year 3	185,070	74,560	110,510	48,080	62,430

B C D 1 Sales Revenue - Cost of Goods sold = Gross Profit 2 Gross Profit - Operating Expenses = Net Income 5 Year 1 6 Year 2 7 Year 3 Sales Revenue Cost of Goods Sold Gross Profit Operating Expenses Net Income 74640 =B5-D5 31300 =D5-F5 13940 109800 73200 =B6-C6 =D6-F6 30340 =C7+D7 74560 11051048080 =D7-E7