question10 &11

10. Compute the missing numbers in the following statement of comprehensive incomes: Year 1 Year 2 Sales revenue $50,000 Beginning inventory 12,400 (c) (d) $42,000 Purchases 30,600 Purchase returns and allowances 1,000 600 (e) Ending inventory Cost of goods sold Gross margin (a) (b) 32,000 14,000 35,000 11. Hughes Medical Supply, a retail business, had net sales of $92,400 during January. Purchases of merchandise during the month amounted to $42,700, of which $27,400 had been paid for by the end of January. The merchandise purchased had a retail sales value of $59,000. On January 1, inventory on hand cost $26,180 and had a retail sales value of $39,400. Traditionally, Hughes' gross margin percentage has been 30 percent. Use the gross margin estimation method to determine the cost of Hughes' inventory at the end of January