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Soln5-07 - PROBLEM SOLUTIONS 5-1 Computing Missing Amounts...

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Problem Solutions – Chapter 5 137 PROBLEM SOLUTIONS 5-1 Computing Missing Amounts Requirements 1. and 2. are shown below. Computed amounts are shown in bold. Company A B C Sales $ 85 $ 57 $ 75 Minus Cost of Goods Sold: Beginning Inventory $ 5 $ 6 $ 21 + Purchases 120 45 55 Goods Available for Sale $125 $ 51 $ 76 – Ending Inventory 65 10 21 Cost of goods Sold $ 60 $ 41 $ 55 Gross Profit $ 25 $ 16 $ 20 Operating expenses 18 13 15 Income tax expense 3 1 2 Net income $ 4 $ 2 $ 3
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