Question

Using your accounting knowledge, fill in the blanks in the following separate income statements a through e. Identify any negative amount by putting it in parentheses. a b c d e Sales $62,000 $43,500 $ 46,000 $ ? $25,600 Cost of goods sold Merchandise inventory (beginning) 8,000 17,050 7,500 8,000 4,560 Total cost of merchandise purchases 38,000 ? ? 32,000 6,600 Merchandise inventory (ending) 11950 ? (3,000) (9,000) (6,600) ? Cost of goods sold 34,050 16,000 ? ? 7,000 Gross profit ?27950 ? 3,750 45,600 ? Expenses 10,000 10,650 12,150 3,600 6,000 Net income (loss) $ 17950? $16,850 $ (8,400) $42,000 $ ?

Answer 1

Answer:

1. d's Sales is $79,000

2. b's Total cost of merchandise purchases is $1,950

3. c's Total cost of merchandise purchases is $43,750

4. c's Cost of goods sold is $42,250

5. d's Cost of goods sold is $33,400

6. b's Gross profit is $27,500

Explanation:

Note: Kindly see the attached excel file which contains the calculations

In order to do the calculations, the following formulas are employed:

Gross profit = Sales - Cost of goods sold

Cost goods sold = Beginning merchandise inventory + Total cost of merchandise purchases - Ending merchandise inventory

Sales =  Cost of goods sold + Gross profit  

Total cost of merchandise purchases = Cost goods sold - Beginning merchandise inventory + Ending merchandise inventory

Download xlsx