Fill in the missing amounts. Sales revenue Sales returns and allowances (a) Net sales Cost of goods sold Gross profit Operating expenses Net income (b) (c) Pharoah Company $102,000 97,000 65,960 16,490 (d) $ (e) S Wildhorse Company 6,200 118,000 40,120 20,060
Fill in the missing amounts. Sales revenue Sales returns and allowances (a) Net sales Cost of goods sold Gross profit Operating expenses Net income (b) (c) Pharoah Company $102,000 97,000 65,960 16,490 (d) $ (e) S Wildhorse Company 6,200 118,000 40,120 20,060
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![**Exercise: Calculating Financial Amounts**
This exercise aims to help students understand how to fill in missing amounts in a financial statement for two companies, Pharoah Company and Wildhorse Company. Below is the incomplete statement with some given values. Calculate the missing amounts:
### Financial Statement
| **Category** | **Pharoah Company** | **Wildhorse Company** |
|-------------------------------|---------------------|-----------------------|
| Sales revenue | $102,000 | $(d) |
| Sales returns and allowances | (a) | $6,200 |
| Net sales | $97,000 | $118,000 |
| Cost of goods sold | $65,960 | (e) |
| Gross profit | (b) | $40,120 |
| Operating expenses | $16,490 | (f) |
| Net income | (c) | $20,060 |
### Calculations
1. **Sales returns and allowances for Pharoah Company (a):**
\[
\text{Net sales} = \text{Sales revenue} - \text{Sales returns and allowances}
\]
\[
97,000 = 102,000 - \text{Sales returns and allowances}
\]
\[
\text{Sales returns and allowances} = 102,000 - 97,000 = \$5,000
\]
2. **Gross profit for Pharoah Company (b):**
\[
\text{Gross profit} = \text{Net sales} - \text{Cost of goods sold}
\]
\[
\text{Gross profit} = 97,000 - 65,960 = \$31,040
\]
3. **Net income for Pharoah Company (c):**
\[
\text{Net income} = \text{Gross profit} - \text{Operating expenses}
\]
\[
\text{Net income} = 31,040 - 16,490 = \$14,550
\]
4. **Sales revenue for Wildhorse Company (d):**
\[
\text{Net sales} = \text{Sales revenue} - \text{Sales returns and allowances}
\]
\[
118,](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0d1f03dc-16fb-4834-9136-6d6472c9ed62%2Fdf5e47af-9409-48a3-ad0b-1fa0739f1b53%2Fxkib0mp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Exercise: Calculating Financial Amounts**
This exercise aims to help students understand how to fill in missing amounts in a financial statement for two companies, Pharoah Company and Wildhorse Company. Below is the incomplete statement with some given values. Calculate the missing amounts:
### Financial Statement
| **Category** | **Pharoah Company** | **Wildhorse Company** |
|-------------------------------|---------------------|-----------------------|
| Sales revenue | $102,000 | $(d) |
| Sales returns and allowances | (a) | $6,200 |
| Net sales | $97,000 | $118,000 |
| Cost of goods sold | $65,960 | (e) |
| Gross profit | (b) | $40,120 |
| Operating expenses | $16,490 | (f) |
| Net income | (c) | $20,060 |
### Calculations
1. **Sales returns and allowances for Pharoah Company (a):**
\[
\text{Net sales} = \text{Sales revenue} - \text{Sales returns and allowances}
\]
\[
97,000 = 102,000 - \text{Sales returns and allowances}
\]
\[
\text{Sales returns and allowances} = 102,000 - 97,000 = \$5,000
\]
2. **Gross profit for Pharoah Company (b):**
\[
\text{Gross profit} = \text{Net sales} - \text{Cost of goods sold}
\]
\[
\text{Gross profit} = 97,000 - 65,960 = \$31,040
\]
3. **Net income for Pharoah Company (c):**
\[
\text{Net income} = \text{Gross profit} - \text{Operating expenses}
\]
\[
\text{Net income} = 31,040 - 16,490 = \$14,550
\]
4. **Sales revenue for Wildhorse Company (d):**
\[
\text{Net sales} = \text{Sales revenue} - \text{Sales returns and allowances}
\]
\[
118,
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