Consider the data of the following companies:

Requirements
1. Supply the missing amounts in the preceding table.
2. Prepare the income statement for the year ended December 31. 2015, 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.

Transcribed Image Text:

Beginning Ending Net Sales Merchandise Net Cost of Merchandise Revenue Cost o Goods S Company Red Yellow Orange Green Inventory 22,000 25,000 Purchases 65,000 95,000 52,000 Inventory 101,000 17,000 96,00 93,000 86,000 22,000 5,000 62 12,000