Problem #3 Missing Elements - Reconstruction Presented bėlow is an income statement. Net Sales Gross Sales P45,000 15,000 Less: Sales Returns & Allowances Sales Discounts Net Sales Cost of Goods Sold P220,000 Inventory, Jan. 1, 2015 Purchases P985,000 Less: Purchases Returns & Allowances P31,000 Purchases Discounts 20,000 Net Purchases 36,000 Transportation-In Net Cost of Purchases Cost of Goods Available for Sale 260,000 Less: Inventory, Dec. 31, 2015 Cost of Goods Sold Gross Profit from Sales P620,000 Operating Expenses Profit Required: Insert the missing figures in the income statement above. Note that Gross Profit is 40% of Net Sales and Profit is 10% of Net Sales.
Problem #3 Missing Elements - Reconstruction Presented bėlow is an income statement. Net Sales Gross Sales P45,000 15,000 Less: Sales Returns & Allowances Sales Discounts Net Sales Cost of Goods Sold P220,000 Inventory, Jan. 1, 2015 Purchases P985,000 Less: Purchases Returns & Allowances P31,000 Purchases Discounts 20,000 Net Purchases 36,000 Transportation-In Net Cost of Purchases Cost of Goods Available for Sale 260,000 Less: Inventory, Dec. 31, 2015 Cost of Goods Sold Gross Profit from Sales P620,000 Operating Expenses Profit Required: Insert the missing figures in the income statement above. Note that Gross Profit is 40% of Net Sales and Profit is 10% of Net Sales.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem #3
Missing Elements - Reconstruction
Presented below is an income statement.
Net Sales
P
Gross Sales
Less: Sales Returns & Allowances
Sales Discounts
P45,000
15,000
Net Sales
Cost of Goods Sold
P220,000
Inventory, Jan. 1, 2015
Purchases
P985,000
P31,000
20,000
Less: Purchases Returns & Allowances
Purchases Discounts
Net Purchases
36,000
Transportation-In
Net Cost of Purchases
Cost of Goods Available for Sale
260,000
Less: Inventory, Dec. 31, 2015
Cost of Goods Sold
Gross Profit from Sales
Operating Expenses
Profit
P620,000
Required:
Insert the missing figures in the income statement above. Note that Gross Profit is 40%
of Net Sales and Profit is 10% of Net Sales.
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