Question

show your work step by step and analyze each number calculated

5) Relation between Inventory System and Income Statement (9 points) The following information is given by the accounting department. Fill in the gaps (blanks) with the correct Dollar Amounts. Each line represents a new independent task. Beginning Inventory Purchases Ending Inventory Net Sales COGS Gross Profit Net Income Expenses or Loss a) $85,000 $168,000 $480,000 $200.000 $28,000 b) $420,000 $118.500 $810,000 $222,000 $165,000 c) $387,000 $144,000 $431.500 $97,000 $ (33,000)

Answer 1

The following is the answer and explanation:-

Inventory or loss ans Beginning Purchases Ending Net Gross Expenses Net Income Inventory sales COGS Profit ay $ 85000 $168000 $252800 $4800 co $200.000 $479800 9452000 $2800 o b] $168118.5$42.000 $118.500 $81 coco $589000 $222000 $165000 $57000 c] $ (242568.5)$387000 $144.000$97437.5 $431.500 $97.000 $136431-5$ (33.000

a] Explaination is Ending inventory - Purchases + Beginning inventory lost of goods sold (COGS) = 168000+ 85000 2oo.coo $252800 ug Gross Profit Sales Cost of goods sold =48000 $479800 url] Expenses = Total revenue - Net income 2o.ooo 4800w 280oo $ 452.000 * Total revenue is that revenue that the company receive you the goods and services it sells. b] is cost of goods sold = sales Gross Profit 81 coco 2 2 2 coo = $588000 iz Beginning inventory = Ending inventory - Pwechases + COGS 118.500 -42cocot 58 800 o = $168118.5 ii] Net Income = Revenul -COGS • Expenses 8100co 588000 165 coo = $ 57000

c iz Beginning enventory - ending inventory - Purchases + COGS 144 ono 3870o + 431.500 $(2.42.5 68.5) ůj sales GP & COGS 97000 + 431.500 $97431.5 ii] Expenses - Total Revenue - Net income Iloss 97431.5- (33000) $130431.5