Computing periodic inventory amounts 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.

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Beginning Ending Net Sales Merchandise Net Cost of Merchandise Cost of Gross Inventory Purchases Inventory Goods Sold Profit Company Red Yellow Orange Green Revenue $ 101,000 22,000 25,000 (cl 12,000 (b) 93,000 86,000 65,000 17,000 95,000 52,000 (a $31,000 96,000 40,000 62,000 22,000 5,000 49,000