Answer:
<u>For 2013:</u>
Net sales = $279,000
Ending inventory = $32,000
Purchases = $242,000
<u>For 2014:</u>
Sales revenue = $360,000
Cost of Goods sold = $269,000
Ending inventory = $24,000
<u>For 2015:</u>
Net sales = $390,000
Sales returns and allowances = $20,000
Beginning inventory = $24,000
Ending inventory = $31,000
Explanation:
Note: See the attached excel file for the tabulated income statement data to see the filled missing amounts. The answers are the ones in bold red color.
For each of the years, the calculations are done as follows:
<u>For 2013:</u>
Net sales = Sales revenue - Sales returns and allowances = $290,000 - $11,000 = $279,000
Ending inventory in 2013 = Beginning inventory in 2014 = $32,000
Purchases = Cost of Goods sold - Beginning inventory + Purchase returns and allowances – Freight-in + Ending inventory = $233,000 - 20,000 + 5,000 - 8,000 + $32,000 = $242,000
<u>For 2014:</u>
Sales revenue = Sales returns and allowances + Net sales = $13,000 + $347,000 = $360,000
Cost of Goods sold = Net sales - Gross profit on sales = $347,000 - $91,000 = $269,000
Ending inventory = Beginning inventory + Purchases - Purchase returns and allowances + Freight-in - Cost of Goods sold = $32,000 + $260,000 - $8,000 + $9,000 - $269,000 = $24,000
<u>For 2015:</u>
Net sales = Cost of Goods sold + Gross profit on sales = $293,000 + $97,000 = $390,000
Sales returns and allowances = Sales revenue - Net sales = $410,000 - $390,000 = $20,000
Beginning inventory in 2015 = Ending inventory in 2014 = $24,000
Ending inventory = Beginning inventory + Purchases - Purchase returns and allowances + Freight-in - Cost of Goods sold = $24,000 + $298,000 - $10,000 + $12,000 - $293,000 = $31,000
