Explanation Given, H Cosmetics Y Grocery W Wholesalers Sales Revenue $90,000 (e) 122,000 Sales Returns and allowances (a) $5,000 $12,000 Net sales $86,000 $95,000 (i) Cost of Goods Sold $56,000 (f) (j) Gross Profit (b) $38,000 $24,000 Operating Expenses $15,000 (g) $18,000 Income from operations (c) (h) (k) Other expenses and losses $4,000 $7,000 (l) Net Income (d) $11,000 $5,000 (a) Formula to calculate sales returns and allowances of the H Cosmetics, Sales Returns = Sales − Net Sales Substitute $90,000 for sales and $86,000 for net sales. Sales Returns = $ 90 , 000 − $ 86 , 000 = $ 4 , 000 Hence, sales returns of the H Cosmetics are $4,000. (b) Formula to calculate gross profit of the H Cosmetics, Gross Profit = Net Sales − Cost of Goods Sold Substitute $86,000 for net sales and $56,000 for cost of goods sold. Gross Profit = $ 86 , 000 − $ 56 , 000 = $ 30 , 000 Hence, the Gross Profit of the H Cosmetics is $30,000. (c) Formula to calculate income from operations of the H Cosmetics, Income from Operations = Gross Profit − Operating Expenses Substitute $30,000 for gross profit and $15,000 for operating expense. Income from Operations = $ 30 , 000 − $ 15 , 000 = $ 15 , 000 Hence, the Income from operations of the H Cosmetics is $15,000. (d) Formula to calculate net income of the H Cosmetics, Net Income = Income from Operations − Other Expenses and Losses Substitute $15,000 for income from operations and $4,000 for other expenses and losses. Net Income = $ 15 , 000 − $ 4 , 000 = $ 11 , 000 Hence, the net income of the H Cosmetics is $110,000. (e) Formula to calculate sales revenue of the Y Grocery, Sales Revenue = Net Sales + Sales Returns Substitute $95,000 for net sales and 5,000 for sales returns. Sales Revenue = $ 95 , 000 + $ 5 , 000 = $ 100 , 000 Hence, the sales revenue of the Y Grocery is $100,000. (f) Formula to calculate cost of goods sold of the Y Grocery, Cost of Goods Sold = Net Sales − Gross Profit Substitute $95,000 for net sales and $38,000 for gross profit. Cost of Goods Sold = Net Sales − Gross Profit = $ 95 , 000 − $ 38 , 000 = $ 57 , 000 Hence, the cost of goods sold of the Y Grocery is $57,000

14th Edition

ISBN: 9781119815327

Author: Weygandt

Publisher: WILEY

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Question

Chapter 5, Problem 14E

To determine

Income Statement: This is a financial statement that shows the net income earned, or net loss suffered by a company, through reporting all the revenues earned, and expenses incurred, by the company over a specific period of time. An income statement is also known as an operations statement, an earnings statement, a revenue statement, or a profit and loss statement. The net income is the excess of revenue over expenses.

To determine: Missing amounts from the table.

Expert Solution & Answer

Chapter 5 Solutions

ACCOUTING PRIN SET LL INCLUSIVE

Ch. 5 - Prob. 1Q Ch. 5 - Prob. 2Q Ch. 5 - Prob. 3Q Ch. 5 - Prob. 4Q Ch. 5 - 5. When is cost of goods sold determined in a...Ch. 5 - Prob. 6Q Ch. 5 - Prob. 7Q Ch. 5 - Prob. 8Q Ch. 5 - Prob. 9Q Ch. 5 - Prob. 10Q

Ch. 5 - Prob. 11Q Ch. 5 - Prob. 12Q Ch. 5 - Prob. 13Q Ch. 5 - Prob. 14Q Ch. 5 - Prob. 15Q Ch. 5 - Prob. 16Q Ch. 5 - 17. Identify the distinguishing features of an...Ch. 5 - Prob. 18Q Ch. 5 - Prob. 19Q Ch. 5 - Prob. 21Q Ch. 5 - Prob. 22Q Ch. 5 - Prob. 23Q Ch. 5 - Prob. 1BE Ch. 5 - BE5-2 Presented below are the components in Veasy...Ch. 5 - Prob. 3BE Ch. 5 - Prob. 4BE Ch. 5 - Prob. 5BE Ch. 5 - Prob. 6BE Ch. 5 - Prob. 7BE Ch. 5 - Prob. 8BE Ch. 5 - Prob. 9BE Ch. 5 - Prob. 10BE Ch. 5 - Prob. 11BE Ch. 5 - Prob. 12BE Ch. 5 - Prob. 13BE Ch. 5 - Prob. 14BE Ch. 5 - Prob. 15BE Ch. 5 - Prob. 16BE Ch. 5 - Prob. 1DIE Ch. 5 - Prob. 2DIE Ch. 5 - Prob. 3DIE Ch. 5 - Prob. 4DIE Ch. 5 - Prob. 5DIE Ch. 5 - E5-1 Mr. McKenzie has prepared the following list...Ch. 5 - Prob. 2E Ch. 5 - Prob. 3E Ch. 5 - Prob. 4E Ch. 5 - Prob. 5E Ch. 5 - Prob. 6E Ch. 5 - Prob. 7E Ch. 5 - Prob. 8E Ch. 5 - Prob. 9E Ch. 5 - Prob. 10E Ch. 5 - E5-11 An inexperienced accountant for Stahr...Ch. 5 - Prob. 12E Ch. 5 - Prob. 13E Ch. 5 - Prob. 14E Ch. 5 - Prob. 15E Ch. 5 - Prob. 17E Ch. 5 - Prob. 18E Ch. 5 - Prob. 19E Ch. 5 - Prob. 20E Ch. 5 - Prob. 21E Ch. 5 - Prob. 22E Ch. 5 - Prob. 1PSA Ch. 5 - Prob. 6PSA Ch. 5 - Prob. 6EYCT Ch. 5 - Prob. 7EYCT Ch. 5 - Prob. 1ISTQ Ch. 5 - IFRS5-2 For each of the following income statement...Ch. 5 - Prob. 3ISTQ Ch. 5 - Prob. 4ISTQ Ch. 5 - Prob. 1IFRE Ch. 5 - Prob. 2IFRE Ch. 5 - Prob. 3IFRE

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