Question

Weygandt, Accounting Principles, 13e

Exercise 200 

For each of the following, determine the missing amounts.

Answer 1

Solution

1) Sales Revenue Cost of goods sold Gross Profit Operating expenses Net Income

$100,000 $ 58,000    $42,000    $30,000 $12,000

Calculations

Net Income $12,000

Add-Operating Expenses $30,000

Gross Profit $42,000 ($12,000+$30,000)

Cost of goods sold $ 58,000 ($100,000-$42,000)

Sales Revenue $ 100,000

2) Sales Revenue Cost of goods sold Gross Profit Operating expenses Net Income

$ 260,000 $135,000 $125,000 $45,000 $80,000

Sales Revenue   $ 260,000 ($135,000+$125,000)

Less-Cost of goods sold   $135,000

Gross Profit $125,000

Less :Operating Expenses $45,000 ($125,000-$80,000)

Net Income    $ 80,000