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View Full Version : Inferring missing values with income statement relationships


Sanibak
Mar 28, 2010, 01:13 PM
I have been working on this problem all day and can't find anywhere to have this figured out.

I have this given to me:

Sales Revenue = 900
Beginning inventory = 180
Purchases = 800

I have to find:

Total available
Ending inventory
Gross profit
Cost of goods sold

I know I'm forgetting something but the book and internet isn't telling me anything but formulas that all hinge on knowing the CoGS

Thanks in advance

pready
Mar 31, 2010, 07:36 AM
Total Available = beginning Inventory + Purchases

Ending Inventory = Total available - Cost of Goods sold

Gross Profit = Sales - Gost of Goods sold.

From your problem you are missing some information like the number of units sold and cost per unit.