Answer:
Income Statements
2013 2014 2015
Sales revenue $294,170 $360,920 $414,180
Sales returns and allowances 11,200 13,470 20,740
Net sales 282,970 347,350 393,440
Beginning inventory 21,590 33,560 42,010
Purchases 245,240 263,090 298,600
Purchase returns and allowances (5,180) (8,330) (10,440)
Freight-in 8,140 9,480 12,440
Total cost of goods available 269,790 297,800 342,610
Ending inventory 33,560 42,010 47,870
Cost of goods sold 236,230 255,790 294,740
Gross profit on sales 46,740 91,560 98,700
Explanation:
a) Data and Calculations:
2013 2014 2015
Sales revenue $294,170 $ $414,180
Sales returns and allowances 11,200 13,470
Net sales 347,350
Beginning inventory 21,590 33,560
Ending inventory
Purchases 263,090 298,600
Purchase returns and allowances 5,180 8,330 10,440
Freight-in 8,140 9,480 12,440
Cost of goods sold 236,230 294,740
Gross profit on sales 46,740 91,560 98,700
Beginning inventory 21,590 33,560 42,010
Purchases 245,240 263,090 298,600
Purchase returns and allowances (5,180) (8,330) (10,440)
Freight-in 8,140 9,480 12,440
Total cost of goods available 269,790 297,800 342,610
Ending inventory 33,560 42,010 47,870
Cost of goods sold 236,230 255,790 294,740
