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Supply the missing dollar amounts for the income statement for each of the follo

ID: 2664610 • Letter: S

Question

Supply 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 revenue                                    $7,500                                                ?                                    $6,000

Beginning inventory         $11,200                                             $6,500                                $4,000

Purchases                        $5,000                                                  ?                                   $9,500

Goods available for sale        ?                                                $15,050                            $13,500

Ending inventory            $10,200                                            $11,050                                   ?

 Cost of goods sold                                     ?                                               ?                                  $4,500

Gross profit                                                ?                                           $1,500                                ?

Expenses                                                 $400                                            ?                                   $700

Pretax income                                          $1,100                                     ($400)                           $800

 

                                                   Case A                                             Case B                                Case C

Net sales revenue                                    $7,500                                                ?                                    $6,000

Beginning inventory         $11,200                                             $6,500                                $4,000

Purchases                        $5,000                                                  ?                                   $9,500

Goods available for sale        ?                                                $15,050                            $13,500

Ending inventory            $10,200                                            $11,050                                   ?

 Cost of goods sold                                     ?                                               ?                                  $4,500

Gross profit                                                ?                                           $1,500                                ?

Expenses                                                 $400                                            ?                                   $700

Pretax income                                          $1,100                                     ($400)                           $800

Explanation / Answer

                                       Case A          Case B         Case C

Net sales revenue           $7,500            $5,500         $6,000
                                       _____________________________
Beginning inventory         $11,200         $6,500         $4,000

Purchases                     $5,000         $8,550         $9,500
                                      ______________________________       
Goods available for sale $16,200      $15,050        $13,500

Ending inventory             $10,200     $11,050          $9,000
                                      ______________________________
Cost of goods sold              $6,000       $4,000          $4,500
                                       _____________________________
Gross profit                      $1,500      $1,500           $1,500

Expenses                            $400        $1,900               $700      

Pretax income                 $1,100         ($400)               $800

                                       Case A          Case B         Case C

Net sales revenue           $7,500            $5,500         $6,000
                                       _____________________________
Beginning inventory         $11,200         $6,500         $4,000

Purchases                     $5,000         $8,550         $9,500
                                      ______________________________       
Goods available for sale $16,200      $15,050        $13,500

Ending inventory             $10,200     $11,050          $9,000
                                      ______________________________
Cost of goods sold              $6,000       $4,000          $4,500
                                       _____________________________
Gross profit                      $1,500      $1,500           $1,500

Expenses                            $400        $1,900               $700      

Pretax income                 $1,100         ($400)               $800

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