Question

Determining Amounts for Items Omitted from Income Statement

One item is omitted in each of the following four lists of income statement data. Determine the amounts of the missing items.

Chase CompanyJessup Inc.Osterman Company     Snyder Co.

Sales $423,800$$1,070,000$

Cost of goods sold$$401,200$$425,000

Gross profit $80,800$296,600$314,300$278,800

Answer 1

Chase Company:

Cost of goods sold = Sales - Gross profit = $423,800 - $80,800 = $343,000

Jessup Inc.:

Sales = Cost of goods sold + Gross profit = $401,200 + $296,600 = $697,800

Osterman Company:

Cost of goods sold = Sales - Gross profit = $1,070,000 - $314,300 = $755,700

Snyder Co.:

Sales = Cost of goods sold + Gross profit = $425,000 + $278,800 = $703,800