Question

Enter the missing dollar amounts for the income statement for each of the following independent cases. (Hint: In Case B, work from the bottom up.)

  case A Case B Case C

net sales		7500				5050
beg. inv	11200		7000		4000
purchases	4500				9500
Goods avail for sale			15050		13500
Ending Inv	9000		11050
COGS						4200
Gross Profit				800
Expenses		300				700
Pretax income (loss)		500				150

Answer 1

Enter the missing dollar amounts for the income statement for each of the following independent cases. (Hint: In Case B, work from the bottom up.)

	Case A		Case B		Case C
net sales		7500		4000+800 = 4800		5050
beg. inv	11200		7000		4000
purchases	4500		15050-7000 = 8050		9500
Goods avail for sale	11200+4500 = 15700		15050		13500
Ending Inv	9000		11050		13500-4200 = 9300
COGS		15700-9000 = 6700		15050-11050 = 4000		4200
Gross Profit		800		800		850
Expenses		300				700
Pretax income (loss)		500				150