Question

Gaston Corporation made sales of $750 milion during 2018. Of this amount, Gaston collected cash for $735 million The company's cost of goods sold was $280 milion and all other expenses for the year totaled $250 million Also during 2018, Gaston paid $400 million for its inventory and $300 million for everything else Beginning cash was $80 million a. How much was Gaston's net income for 2018? b. How much was Gaston's cash balance at the end 20187 a. How much was Gaston's net income for 20182 Gaston's net income for 2018 is $ million

Answer 1

a) Net Income/Loss

Gaston Corporation
Income statement for the period of 2018
Particulars	Amount in $	Amount in $
Sales		750
Cost of Goods Sold		280
Gross Income		470
Expenses
Other Expenses	250
Everyting Else- Expenses	300	550
Net Income/Loss		(80)

b) Cash Balance

Gaston Corporation
Cash statement for the period of 2018
Particulars	Amount in $	Amount in $
Opening Cash		80
Inflow
Cash Sales		735
Outflow
Inventory Purchase	400
Other Expenses	250
Everyting Else- Expenses	300	950
Closing Cash		(135)