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. A net loss in the right-hand column is to be indicated by placing brackets around the amount, for example as in line e <15,000>. Net Sales a. 240,000 b. 480,000 c. 630,000 d. 810,000 e. ? Beginning Net Pur- Inventory chases 76,000 104,000 ztw Soa 72,000 272,000 1000 207,000 ? 450,000 ? ? 156,000 Ho Ending Inventory 35,200 Foreni ? Cost of Goods Sold Gross Profit 95,200 ? onlow hundvis ? ONCE A 264,000 441,000 189,000 Expenses 72,000 10? 148,500 234,000 270,000 ? 166,500 135,000 153,000 396,000 135,000 Net Income or (Loss) 23X 20,000 ? <15,000> market chains-Publix Super Markets, Inc., and Safeway, Inc.- Each uses a sophisticated
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. A net loss in the right-hand column is to be indicated by placing brackets around the amount, for example as in line e <15,000>. Net Sales a. 240,000 b. 480,000 c. 630,000 d. 810,000 e. ? Beginning Net Pur- Inventory chases 76,000 104,000 ztw Soa 72,000 272,000 1000 207,000 ? 450,000 ? ? 156,000 Ho Ending Inventory 35,200 Foreni ? Cost of Goods Sold Gross Profit 95,200 ? onlow hundvis ? ONCE A 264,000 441,000 189,000 Expenses 72,000 10? 148,500 234,000 270,000 ? 166,500 135,000 153,000 396,000 135,000 Net Income or (Loss) 23X 20,000 ? <15,000> market chains-Publix Super Markets, Inc., and Safeway, Inc.- Each uses a sophisticated
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![**Exercise:**
**EXERCISE 8**
**Relationships Within Periodic Inventory Systems**
This exercise assesses the relationships between the information recorded in periodic inventory systems and net income. The net income of the Poshak Super Jackets, Inc., and Slappy, Inc., should then be indicated by placing brackets around loss amounts. At the left, the first-listed company is Poshak Super Jackets, Inc.
| | Poshak Super Jackets, Inc. | Slappy, Inc. |
|------------------------|----------------------------|--------------|
| Net Sales | a. $480,000 | c. $130,000 |
| | b. $340,000 | d. $200,000 |
| | c. $200,000 | e. $270,000 |
| Cost of Goods Sold | 180,000 | 70,000 |
| Net Income (Loss) | ? | ? |
| Gross Profit | 300,000 | ? |
| Expenses | 250,000 | ? |
Year after year, average gross profit rates in the industry have increased to 42.5 percent and expenses have stabilized at 33 percent of sales for companies using periodic inventory systems.
**Instructions:**
1. Compute the missing amounts for Poshak Super Jackets, Inc., and Slappy, Inc.
2. Discuss inventory system implications.
---
**Explanation of Table:**
The table compares financial metrics for two companies: Poshak Super Jackets, Inc. and Slappy, Inc. The key figures include net sales, cost of goods sold, net income (loss), gross profit, and expenses. Missing values need to be calculated based on given information and typical industry metrics.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F51ef889a-0b0e-4561-8503-ff9c0de4c310%2F0c30445a-711a-4bf8-9c93-237bf8bd6d87%2F62qqndf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Exercise:**
**EXERCISE 8**
**Relationships Within Periodic Inventory Systems**
This exercise assesses the relationships between the information recorded in periodic inventory systems and net income. The net income of the Poshak Super Jackets, Inc., and Slappy, Inc., should then be indicated by placing brackets around loss amounts. At the left, the first-listed company is Poshak Super Jackets, Inc.
| | Poshak Super Jackets, Inc. | Slappy, Inc. |
|------------------------|----------------------------|--------------|
| Net Sales | a. $480,000 | c. $130,000 |
| | b. $340,000 | d. $200,000 |
| | c. $200,000 | e. $270,000 |
| Cost of Goods Sold | 180,000 | 70,000 |
| Net Income (Loss) | ? | ? |
| Gross Profit | 300,000 | ? |
| Expenses | 250,000 | ? |
Year after year, average gross profit rates in the industry have increased to 42.5 percent and expenses have stabilized at 33 percent of sales for companies using periodic inventory systems.
**Instructions:**
1. Compute the missing amounts for Poshak Super Jackets, Inc., and Slappy, Inc.
2. Discuss inventory system implications.
---
**Explanation of Table:**
The table compares financial metrics for two companies: Poshak Super Jackets, Inc. and Slappy, Inc. The key figures include net sales, cost of goods sold, net income (loss), gross profit, and expenses. Missing values need to be calculated based on given information and typical industry metrics.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education