Two or more items are omitted in each of the following tabulations of income sta

Question

Two or more items are omitted in each of the following tabulations of income statement data. Fill in the amounts that are missing.

2016

2017

2018

2016

2017

2018

Sales revenue $287,390 $

$407,960 Sales returns and allowances (12,020) (12,550)

Net sales

349,848

Beginning inventory 19,750 33,500

Ending inventory

Purchases

260,460 297,376 Purchase returns and allowances (4,770) (7,200) (10,980) Freight-in 8,350 8,660 13,080 Cost of goods sold (231,210)

(291,795) Gross profit on sales 44,160 94,480 102,340

Explanation / Answer

Equation: Net sales = Sales - Sales returns and allowances

Cost of goods Sold = Begining Inventory + Purchases + Freight In - Purchase returns and allowances -Ending Inventory

Gross Profit on sales = Net sales - Cost of goods Sold

2016 2017 2018 Sales revenue          2,87,390        3,62,398          4,07,960 Sales returns and allowances            (12,020)         (12,550)            (13,825) Net sales          2,75,370        3,49,848          3,94,135 Beginning inventory             19,750          33,500             40,052 Ending inventory            (33,500)         (40,052)            (47,733) Purchases          2,41,380        2,60,460          2,97,376 Purchase returns and allowances              (4,770)           (7,200)            (10,980) Freight-in               8,350            8,660             13,080 Cost of goods sold         (2,31,210)       (2,55,368)         (2,91,795) Gross profit on sales             44,160          94,480          1,02,340

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