Question Content Area

Income Statement for a Merchandiser

Solve for the missing amounts corresponding to the letters in the following income statement for Carpenters Department Store Inc.

Net sales					$206,800
Cost of goods sold:
Beginning inventory			$40,430
Net purchases		$(a)
Transportation-in		10,830
Cost of goods purchased			135,350
Cost of goods available for sale			$175,780
Ending inventory			(c)
Cost of goods sold					(b)
Gross profit					$66,180
Operating expenses					(d)
Income before tax					$45,000
Income tax expense					15,750
Net income					$(e)

Item	Amount
a. Net purchases	$fill in the blank 1
b. Cost of goods sold	$fill in the blank 2
c. Ending inventory	$fill in the blank 3
d. Operating expenses	$fill in the blank 4
e. Net income	$fill in the blank 5