The following is a condensed income statement for Sweets & Treats, a confectionary. Required: Determine (a) The cost of purchases and (b) Costs associated with

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The following is a condensed income statement for Sweets & Treats, a confectionary.

The following is a condensed income statement for Sweets &


Required:
Determine
(a) The cost of purchases and
(b) Costs associated with sales and administration.

Sweets & Treats GAAP Income Statement ltem Revenues Beginning inventory, 1/ 25,000 Purchases Ending inventory, 12/31 12,400 Cost of goods sold Gross margin Sales & administration Profit before taxes Amount $2,250,300 $639,055 $203,555

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