Question

mework Exercise 5-1 Computing revenues, expenses, and income LO C1, C2 Fill in the blanks in the following separate income statements a through e (Amounts to be deducted should be indicated by a minus sign.) $ 62,000 $ 44,300 $ 40,000 $ 24,900 16,550 5,300 8,600 37,000 Sales Cost of goods sold Merchandise inventory (beginning) Total cost of merchandise purchases Merchandise inventory (ending) Cost of goods sold Gross profit Expenses Net income (loss) 7,300 33,000 (5,200) 4,460 5,500 (8,700) (2,800) 19,000 33,860 8.000 25,000 5,900 11,080 (5,160) 11,530 13,770 43,500 3,300 40,200 6,700 $ $ $

Answer 1

Case A:

Cost of goods sold = Merchandise inventory (beginning) + Total cost of merchandise purchases - Merchandise inventory (ending)
$33,860 = $8,600 + $37,000 - Merchandise inventory (ending)
Merchandise inventory (ending) = $11,740

Gross profit = Sales - Cost of goods sold
Gross profit = $62,000 - $33,860
Gross profit = $28,140

Net income (loss) = Gross profit - Expenses
Net income (loss) = $28,140 - $25,000
Net income (loss) = $3,140

Case B:

Cost of goods sold = Merchandise inventory (beginning) + Total cost of merchandise purchases - Merchandise inventory (ending)
$19,000 = $16,550 + Total cost of merchandise purchases - $2,800
Total cost of merchandise purchases = $5,250

Gross profit = Sales - Cost of goods sold
Gross profit = $44,300 - $19,000
Gross profit = $25,300

Case C:

Gross profit = Sales - Cost of goods sold
$5,900 = $40,000 - Cost of goods sold
Cost of goods sold = $34,100

Cost of goods sold = Merchandise inventory (beginning) + Total cost of merchandise purchases - Merchandise inventory (ending)
$34,100 = $5,300 + Total cost of merchandise purchases - $8,700
Total cost of merchandise purchases = $37,500

Case D:

Cost of goods sold = Merchandise inventory (beginning) + Total cost of merchandise purchases - Merchandise inventory (ending)
Cost of goods sold = $7,300 + $33,000 - $5,200
Cost of goods sold = $35,100

Gross profit = Sales - Cost of goods sold
$43,500 = Sales - $35,100
Sales = $78,600

Case E:

Cost of goods sold = Merchandise inventory (beginning) + Total cost of merchandise purchases - Merchandise inventory (ending)
$8,000 = $4,460 + $5,500 - Merchandise inventory (ending)
Merchandise inventory (ending) = $1,960

Gross profit = Sales - Cost of goods sold
Gross profit = $24,900 - $8,000
Gross profit = $16,900

Net income (loss) = Gross profit - Expenses
Net income (loss) = $16,900 - $6,700
Net income (loss) = $10,200