Answered

Explore Westonci.ca, the leading Q&A site where experts provide accurate and helpful answers to all your questions. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

Fill in the missing amounts.

Monty Corp.
Whispering Winds Corp.
Sales revenue
$90,000 $enter a dollar amount
Sales returns and allowances
enter a dollar amount 5,000
Net sales
84,000 106,000
Cost of goods sold
53,760 enter a dollar amount
Gross profit
enter a subtotal of the two previous amounts 40,280
Operating expenses
15,120 enter a dollar amount
Net income
enter a total net income

Sagot :

Tundexi

Let understand that the organized table are intended to calculate missing numbers on Income Statement for the two companies are drawn below.

  • Here, we are calculating missing columns for Monty Corp. and Whispering Winds Corp.

  • Also understand that the bold numbers are the columns calculated according to the question.

Particulars                             Monty Corp.    Whispering Winds Corp.

Sales revenue                         $90,000                $111,000

Sales return and allowance   $6,000                   $5,000

Net sales                                 $84,000                 $106,000

Cost of goods sold                 $53,760                $65,720  

Gross profit                             $30,240                 $40,280

Operating expenses               $15,120                 $19,080

Net income                              $15,120                 $21,200

In conclusion, the formulae used to derived the bolded answers are:

  • Sales revenue - Net sales = Sales returns and allowance
  • Net sales - Cost of goods sold = Gross profit
  • Gross profit - Operating expenses = Net income
  • Net sales + Sales return and allowance = Sales revenue
  • Net sales - Gross profit = Cost of goods sold
  • Gross profit - Net income = Operating expenses

See similar solution here

brainly.com/question/15062414

Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.