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-   -   Inferring missing values with income statement relationships (https://www.askmehelpdesk.com/showthread.php?t=460961)

  • Mar 28, 2010, 01:13 PM
    Sanibak
    Inferring missing values with income statement relationships
    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
  • Mar 31, 2010, 07:36 AM
    pready

    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.

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