Question

Exercise C-12 Financial information follows for four companies, all following ASPE: Determine the missing amounts for (a) to (i). (Enter all answers as positive number.) Elizabeth's Cosmetics Inc. Sage Hill Grocery Inc. Oriole Wholesalers Ltd. Cheyenne Supply Ltd. (c) $ Sales Revenue $97,200 $116,900 $148,600 Sales Returns and Allowances 4,400 11,400 6,100 (a) Net Sales Revenue 71,200 100,300 137,200 (g) Beginning Inventory 23,100 47,300 23,700 (d) Purchases 62,100 108,200 86,200 (e) 10,700 Purchase Returns and Allowances 5,700 8,500 (h) Ending Inventory 52,900 29,300 28,800 (b) Cost of Goods Sold 71,100 59,900 68,800 (f) Gross Profit 11,300 29,200 22,400 (i)

Answer 1

Answer:

		Elizabeth's Cosmetics Inc.		Sage Hill Grocery Inc.		Oriole Wholesalers Ltd.		Cheyenne Supply Ltd.
Sales Revenue		$97,200	(c)	$104,700		$148,600		$116,900
Sales Returns and Allowances	(a)	$26,000		$4,400		$11,400		$6,100
Net Sales Revenue		$71,200		$100,300		$137,200	(g)	$110,800
Beginning inventory		$23,100	(d)	$26,500		$47,300		$23,700
Purchases		$62,100		$108,200	(e)	$105,300		$86,200
Purchase returns and allowance		$5,700		$10,700		$8,500	(h)	$12,300
Ending inventory	(b)	$19,600		$52,900		$29,300		$28,800
Cost of goods sold		$59,900		$71,100	(f)	$114,800		$68,800
Gross profit		$11,300		$29,200		$22,400	(i)	$42,000

Explanations:

(a)	Sales returns and allowance = Sales revenue - Net sales revenue = 97,200-71,200 = $26,000
(b)	Ending inventory = Beg. Inventory + purchases - purchase returns and allowance - Cost of goods sold = 23,100+62,100-5,700-59,900 = $19,600
(c)	Sales revenue = Sales returns and allowances + Net sales revenue = 4,400+100,300 = $104,700
(d)	Beg. inventory = Cost of goods sold - purchases + purchase returns and allowance + Ending Inventory = 71,100-108,200+10,700+52,900=$26,500
(f)	Cost of goods sold = Net sales revenue - Gross profit = 137,200-22,400=$114,800
(e)	Purchases = Cost of goods sold - Beg.inventory + purchase returns and allowance + Ending Inventory = 114,800-47,300+8,500+29,300 = 105,300
(g)	Net sales revenue = Sales revenue - Sales returns and allowances = 116,900-6,100 = $110,800
(h)	Purchase returns and allowance = Beg. Inventory + purchases - ending inventory - cost of goods sold = 23,700+86,200-28,800-68,800=$12,300
(i)	Gross profit = Net sales revenue - Cost of goods sold = $110,800-68,800 = $42,000