Question

Brief Exercise 214

Presented here are the components in Blossom Company’s income statement. Determine the missing amounts.

Sales Revenue		Cost of Goods Sold		Gross Profit		Operating Expenses		Net Income
$83,000		$enter a dollar amount		$31,000		$enter a dollar amount		$15,000
$enter a dollar amount		$59,000		$60,000		$47,000		$enter a dollar amount

Answer 1

Answer- Gross Profit = sales revenue - cost of goods sold.

$31, 000 = $83, 000 - cost of goods sold

Cost of goods Sold = $83, 000 - $ 31,000=$52, 000

Net Income = gross profit - operating expenses

$15, 000 = $31, 000 - operating expenses

Operating expenses = $31, 000 - $15, 000=$16, 000

Gross profit= sales revenue - cost of goods sold

$60, 000 = sales revenue - 59,000

Sales revenue =$60, 000 + $59, 000 =$119, 000

Net income= gross profit - operating expenses

Net income=$60, 000 - $47, 000 =$13, 000