Question

Question: Presented Here Are The Components In Casilla Company’s Income Statement. Determine The Missing Amounts. Sales Revenue Cost Of Goods Sold Gross Profit Operating Expenses Net Income Year 1 $ 71,200 $ (a) $ 30,000 $ (b) $12,100 Year 2 $108,000 $70,000 $ (c) $ (d) $29,500 Year 3 $ (e) $71,900 $109,600 $46,200 $ (f) C

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Presented here are the components in Casilla Company’s income statement.

Determine the missing amounts.

		Sales Revenue			Cost of Goods Sold			Gross Profit			Operating Expenses			Net Income
Year 1		$ 71,200			$	(a)		$ 30,000			$	(b)		$12,100
Year 2		$108,000			$70,000			$	(c)		$	(d)		$29,500
Year 3		$	(e)		$71,900			$109,600			$46,200			$	(f)

Answer 1

For year 1

Cost of Goods Sold = Sales Revenue - Gross Profit

= 71,200 - 30,000

= $41,200

Operating Expenses = Gross Profit - Net Income

= 30,000 - 12,100

= $17,900

For year 2

Gross Profit = Sales Revenue - Cost of Goods Sold

= 108,000 - 70,000

= $38,000

Operating Expenses = Gross Profit - Net Income

= 38,000 - 29,500

= $8,500

For year 3

Sales Revenue = Cost of Goods Sold + Gross Profit

= 71,900 + 109,600

= $181,500

Net Income =  Gross Profit - Operating Expenses

= 109,600 - 46,200

= $63,400