Chapter 7, Problem 2E

Inferring Missing Amounts Based on Income Statement Relationships

Supply 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 A		Case B	Case C
Net sales revenue		$7,500	$ ?		$5,000
Beginning inventory	$11,200		$ 7,000	$ 4,000
Purchases	4,500		?	9,500
Goods available for sale	?		15,050	13.500
Ending inventory	9,000		11,050	?
Cost of goods sold		?	?		4,200
Gross profit		?	800		?
Expenses		300	?		700
Pretax income (loss)		$ 500	($200)		$ 100