Consider the data of the following companies:

Requirements

1. Supply the missing amounts in the preceeding table.

2. Prepare the income statement for Red Company, which uses the periodic inventory system. Include a complete heading and show the full computation of cost of goods sold. Red’s operating expenses for the year were $11,000.

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Ending Cost of goods sold Beginning Net Gross Company Net sales purchases 65,000 $ 17,000 95,000 52,000 (f) 5,000 inventory profit inventory $ 22,000 25,000 (d) 12,000 $ 101,000 (a) $ 31,000 Red Yellow Orange (b) (c) 96,000 22,000 93,000 86,000 62,000 (e) (g) 49,000 Green