Question

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $60,000 $42,500 $36,000 $ ? $23,600
Cost of goods sold
Merchandise inventory (beginning) . . . . . . . . . . 6,000 17,050 7,500 7,000 2,560
Total cost of merchandise purchases . . . . . . . 36,000 ? ? 32,000 5,600
Merchandise inventory (ending) . . . . . . . . . . . . ? (2,700) (9,000) (6,600) ?
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . 34,050 15,900 ? ? 5,600
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . ? ? 3,750 45,600 ?
Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,000 10,650 12,150 2,600 6,000
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . $ ? $15,950 $ (8,400) $43,000 $ ?

Answer 1

a. $25,950
b. 25,000
c. 24,000
d. 28,400
e. 17,600