Question

This exercise stresses

This exercise stresses the relationships between the information recorded in a periodic inventory system and the basic elements of an income statement. Each of the five lines represents a separate set of information. You are to fill in the missing amounts (Input all amounts as positive values except het loss which should be indicated with a minus sign. Omit the sign in your response.) Beginning Net Ending Cost of Net Sales Inventory Purchases Inventory | Goods Sold Gross Profit 280,000 76,000 104,000 35,200 135,200 570,000 73,000 280,000 264,000 630,000 180,000 170,000 441,000 189,000 780,000 450,000 234,000 156,000 240,000 350,000 130,000 Expenses 72,000 Profit or (Loss) 20,000 135,000 140,000 270,000 (15,000)

Answer 1

	Net sales	Beg. Inventory	Net purchases	Ending Inv.	COGS	Gross Profit	Expenses	Profit (Loss)
a	280000	76000	104000	35200	144800	135200	72000	63200	(sales - GP)	(GP-exp.)
b	570000	73000	280000	89000	264000	306000	286000	20000	(available inventory-COGS)	(Sales - COGS)
c	630000	180000	431000	170000	441000	189000	140000	49000	(Net Pur. = End inv. + COGS - begin inven.)	Profit = GP - Exp.
d	780000	231000	450000	135000	546000	234000	270000	-36000	(COGS= Sales-GP)	beg. Inv.=end inv. + COGS- Net pur.)
e	480000	156000	434000	240000	350000	130000	145000	-15000	(sales=COGS+GP)

Net Sales - (Beg. inv. + net purchases - ending inv. = COGS) = GP - Expenses = Profit/(Loss)