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Income Statements: Missing Numbers

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In the following four tables, there appear income statements missing three numbers each. Determine these missing numbers (found in question marks "?"), show equations used and assume taxes are apart of "period expenses".

Number 1:

Sales - 2250
Cost of Goods Sold:
Beginning Inventory: 300
Plus: Purchases: 975
Less Ending Inventory: 225
Cost of Goods Sold: ?
Gross Margin: ?
Period Expenses: 300
Net income (loss): ?

Number 2:

Sales - 1800
Cost of Goods Sold:
Beginning Inventory: 225
Plus: Purchases: ?
Less Ending Inventory: 300
Cost of Goods Sold: 900
Gross Margin: ?
Period Expenses: 400
Net income (loss): ?

Number 3:

Sales - 1350
Cost of Goods Sold:
Beginning Inventory: ?
Plus: Purchases: 850
Less Ending Inventory: 300
Cost of Goods Sold: ?
Gross Margin: ?
Period Expenses: 150
Net income (loss): 150

Number 4:

Sales - 2100
Cost of Goods Sold:
Beginning Inventory: 300
Plus: Purchases: 1200
Less Ending Inventory: ?
Cost of Goods Sold: ?
Gross Margin: 750
Period Expenses: ?
Net income (loss): (50)

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Solution Summary

Excel file shows calculations of missing numbers in the income statement.

$2.19
Similar Posting

Tanner Company: Compute the Missing Amounts in the Company's Financial Statement

Incomplete financial statements for Tanner Company are given:
Compute the missing amounts on the company's financial statements.
***Full details are available in the 3 attachments.

---------------------------------

Tanner Company
Income Statement
For the Year Ended December 31

Sales......................................................................................................................... $2,700,000
Cost of goods sold........................................................................................................... ? _
Gross Margin................................................................................................................... ?
Selling and administrative expenses........................................................................... ______?__
Net operating income.................................................................................................... ?
Interest expense............................................................................................................ ____45,000_
Net income before taxes.............................................................................................. ?
Income taxes (40%)....................................................................................................... ______?___
Net income..................................................................................................................... ===========

Tanner Company
Balance Sheet
December 31
Current Assets:
Cash..................................................................................................................... $ ?
Accounts receivable, net................................................................................. ?
Inventory........................................................................................................... ?__
Total current assets........................................................................................................ $ ?__
Current liabilities............................................................................................................ $250,000
Bonds payable, 10%............................................................................................ ?__
Total liabilities................................................................................................................. ____?__
Stockholders' equity:
Common stock, $2.50 par value................................................................... ?
Retained earnings.......................................................................................... ___?___
Total stockholders' equity.......................................................................................... ___?___
Total liabilities and stockholders' equity................................................................. $ ?
========

The following information is available about the company:
a. Selected financial ratios computed from the statements above are given below:

Current Ratio........................................................ 2.40
Acid-test ratio...................................................... 1.12
Accounts receivable turnover.......................... 15.0
Inventory turnover............................................. 6.0
Debt-to-equity ratio........................................... 0.875
Times interest earned....................................... 7.0
Earnings per share............................................... $4.05
Return on total assets........................................ 14%

b. All sales during the year were on account.
c. The interest expense on the income statement relates to the bonds payable; the amount of bonds outstanding did not change throughout the year.
d. There were no changes in the number of shares of common stock outstanding during the year.
e. Selected balances at the beginning of the current year (January 1) were as follows:

Accounts receivable........................................... $160,000
Inventory............................................................. $280,000
Total assets.......................................................... $1,200,000

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