Understanding the Income Statement Based on the Gross Profit Percentage – The following data presented in income statement order were taken from the year-end records of Berugu Export Company. Fill in all of the missing amounts and show computations. ( Hint: In Case B, start from the bottom.)
|
Independent Cases |
||
|
Income Statement Items |
Case A |
Case B |
|
Gross sales revenue |
$259,000 |
$165,000 |
|
Sales returns and allowances |
20,000 |
? |
|
Net sales revenue |
? |
? |
|
Cost of goods sold |
? |
(70%)? |
|
Gross profit |
(30%)? |
? |
|
Operating expenses |
? |
15,600 |
|
Pretax income |
22,000 |
? |
|
Income tax expense (20%) |
? |
? |
|
Income before extraordinary items |
? |
? |
|
Extraordinary gain (loss) |
2,000 |
10,000 |
|
Less: Income tax (20% of extraordinary item) |
? |
? |
|
Net income |
? |
? |
|
EPS (10,000 shares) |
? |
$2.54 |