[kendu2006]

I need to fill in the blanks, any negatives will be in parentheses.
The blanks I filled in will be underlined.
A B C D E
Sales... $60,000 $42,500 $36,000 $30,400 $23,600

Cost of goods sold
Merchandise inventory (beginning). $6,000 $17,050 $7,500 $7000 $2,560

Total cost of merch. Purchases $36,000 $35,500 $33,500 $32,000 $5,600

Merch. Inventory ending... $4,050 $(2700) (9,000) (6,600) (3,400)

Cost of goods sold... $34,050 $15,900 $13,100 8,400 $5,600

Gross profit... 30,000 $17,100 $3,750 $45,600 $40,000

Expenses... $9,000 $10,650 $ 12,150 $2,600 $6,000

Net Income (Loss)... $21,000 $15,950 $(8,400) $43,000 $34,000

Help I can't figure out what I did wrong. Thank You

[CaptainForest]

A B C D E
Sales... $60,000 $42,500 $36,000 $78,000 $23,600

Cost of goods sold
Merchandise inventory (beginning). $6,000 $17,050 $7,500 $7000 $2,560

Total cost of merch. Purchases $36,000 $1,550 $33,750 $32,000 $5,600

Merch. Inventory ending... $7,950 $2700 9,000 6,600 2,560

Cost of goods sold... $34,050 $15,900 $32,250 32,400 $5,600

Gross profit... 25,950 $26,600 $3,750 $45,600 $18,000

Expenses... $9,000 $10,650 $ 12,150 $2,600 $6,000

Net Income (Loss)... $16,950 $15,950 $(8,400) $43,000 $12,000


Note: Ending Inventory is NOT a negative number, but rather just a negative number for the purposes of calculation of COGS.


A)
Cost of Goods Sold = Beg Inv + Purchases – End Inv
Or,
Ending Inventory = Beg Inv + Purchases – Cost of Goods Sold

Therefore, Ending Inventory = 6,000 + 36,000 – 34,050 = 7,950

Gross Profit = Sales – COGS = 60,000 – 34,050 = 25,950

Net Income = Gross Profit – Expenses = 25,950 – 9,000 = 16,950


B)
Gross Profit = Sales – COGS = 42,500 – 15,900 = 26,600

Cost of Goods Sold = Beg Inv + Purchases – End Inv
Or,
Purchases = Cost of Goods Sold + Ending Inventory – Beg Inventory

Therefore, Purchases = 15,900 + 2,700 – 17,050 = 1,550


C)
Gross Profit = Sales – Cost of goods Sold
COGS = Sales – Gross Profit = 36,000 – 3,750 = 32,250

COGS = Beg Inv + Purchases – End Inv
Or,
Purchases = COGS + Ending Inventory – Beg Inventory

Therefore, Purchases = 32,250 + 9,000 – 7,500 = 33,750


D)
COGS = Beg Inv + Purchases – End Inv = 7,000 + 32,000 – 6,600 = 32,400

Sales – COGS = Gross Profit,
or
Sales = GP + COGS = 45,600 + 32,400 = 78,000


E)
Cost of Goods Sold = Beg Inv + Purchases – End Inv
Or,
Ending Inventory = Beg Inv + Purchases – Cost of Goods Sold

Therefore, Ending Inventory = 2,560 + 5,600 – 5,600 = 2,560

Gross Profit = Sales – COGS = 23,600 – 5,600 = 18,000

Net Income = Gross Profit – Expenses = 18,000 – 6,000 = 12,000