Determining Amounts for Items Omitted from Income StatementOne item is omitted in each of the following four lists of income statement data.Sales(b)$1,245,000(d)$450,750Cost of merchandise sold(a)$339,150(c)$439,625Gross profit467,97584,49084,380123,905Determine the missing amount.Sа.b.с.46

Question
Asked Oct 14, 2019
Determining Amounts for Items Omitted from Income Statement
One item is omitted in each of the following four lists of income statement data.
Sales
(b)
$1,245,000
(d)
$450,750
Cost of merchandise sold
(a)
$339,150
(c)
$439,625
Gross profit
467,975
84,490
84,380
123,905
Determine the missing amount.
S
а.
b.
с.
46
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Determining Amounts for Items Omitted from Income Statement One item is omitted in each of the following four lists of income statement data. Sales (b) $1,245,000 (d) $450,750 Cost of merchandise sold (a) $339,150 (c) $439,625 Gross profit 467,975 84,490 84,380 123,905 Determine the missing amount. S а. b. с. 46

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Expert Answer

Step 1

Net income: The bottom line of income statement which is the result of excess of earnings from operations (revenues) over the costs incurred for earning revenues (expenses) is referred to as net income.

Cost of goods sold: Cost of goods sold is the total of all the expenses incurred by a company to sell the goods during the given period.

Gross margin (gross profit): Gross margin is the amount of revenue earned from goods sold over the costs incurred for the goods sold.

Step 2

a. Calculate the cost of merchandise sold.

Cost of merchandise sold Sales -Gross profit
S450,750-$84, 490
=$366,260
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Cost of merchandise sold Sales -Gross profit S450,750-$84, 490 =$366,260

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Step 3

b. Calculate the sales....

Sales Cost of merchandise sold+ Gross profit
S339,150 $84,380
=$423,530
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Sales Cost of merchandise sold+ Gross profit S339,150 $84,380 =$423,530

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