Question

1.
Enter 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 B Net sales revenue 6,160 7,670 | $ $ 6,540 $ Case A $ 11,040 4,990 16,030 10,340 Case C $ 3,960 9,340 13,300 8,580 15,120 10,910 Beginning inventory Purchases Goods available for sale Ending inventory Cost of goods sold Gross profit Expenses Pretax income (loss) 4,350 1,340 620 360 1,620 $ | $ (440) | $ 1,190
2.

Answer 1

	Case A		Case B		Case C
Net Sales revenue		$       7,670		$       5,550		$       6,160
Beginning Inventory	$       11,040		$         6,540		$         3,960
Purchases	$         4,990		$         8,580		$         9,340
Good available for sale	$       16,030		$       15,120		$       13,300
Ending Inventory	$       10,340		$       10,910		$         8,950
Cost of goods sold		$       5,690		$       4,210		$       4,350
Gross profit		$       1,980		$       1,340		$       1,810
Expenses		$           360		$       1,780		$           620
Pretax Income (loss)		$       1,620		$         -440		$       1,190

Event	Asset		=	Liabilities		+	Stockholder's Equity
a.	Account receivables	$               840					Sales revenue	$                               840
	Inventory	$             -470					Cost of goods sold	$                              -470
b.	Cash	$         55,000					Common Stock	$                            4,000
							Additional paid - in - capital	$                         51,000

A C E F G Case B 1 Case A Case C 2 Net Sales revenue 7670 -E7+E8 6160 3 Beginning Inventory 11040 6540 3960 4 Purchases 4990 D5-D3 9340 5 Good available for sale SUM(B3:B4) 15120 13300 6 Ending Inventory 10340 10910 =F5-G7 7 Cost of goods sold -B5-B6 D5-D6 4350 8 Gross profit -C2-C7 1340 G2-G7 9 Expenses 360 -E8-E10 620 10 Pretax Income (loss) 1620 -440 1190 11 12. 13 14 15 16 17