1. Presented below is financial information that would be presented on a multi-step income statement for two different companies.

(a) Determine the missing amounts above.

Winter Company Merit Company

Sales revenue $190,000 $ (e)_______________

Sales discounts 2,000 2,500

Sales returns (a)_____________ 5,000

Net sales 183,000 210,000

Cost of goods sold 103,000 (f)________________

Gross profit (b)_____________ 80,000

Operating expenses 45,000 (g)_______________

Income from operations (c)______________ 55,000

Other revenues (expenses) 4,000 (h)_______________

Net income (d)______________ 49,000