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Computing Net Income

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Complete the portion for July 31, 2011 of the income statement shown for miss muffin's bakery using the given information: gross sales $35,568, returns and allowances, $341, cost of beginning inventory, $17,166, cost of purchases, $27,743, cost of ending inventory, $22,037, total operating expenses, $3097, compute net sales, cost of goods sold, gross profit, and net income.

Find:
Net sales
Cost of goods sold
Gross profit
Net income

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Solution Summary

The solution shows in a step by step way how to arrive to net sales, cost of goods sold, gross profit, and net income.

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Net Sales = Gross Sales - Returns and Allowances = 35,568 - 341 = 35,227

Cost of Goods Sold = Cost of Beginning Inventory + ...

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