question archive Presented below are the components in Clearwater Seafood's income statement
Presented below are the components in Clearwater Seafood's income statement
Subject:BusinessPrice:2.87 Bought7
Presented below are the components in Clearwater Seafood's income statement. Deter- mine the missing amounts.
Sales Cost of Goods Sold Gross Profit Operating Expenses Net Income
(a) $75,000 ? $28,600 ? $10,800
(b) $108,000 $70,000 ? ? $29,500
(c) ? $71,900 $99,600 $39,500 ?
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Answer:
(a) Cost of Goods Sold = Sales - Gross Profit = $75,000 - $28,600 = $46,400
Operating Expenses = Gross Profit - Net Income = $28,600 - $10,800 = $17,800
(b) Gross Profit = Sales - Cost of Goods Sold = $108,000 - $70,000 = $38,000
Operating Expenses = Gross Profit - Net Income = $38,000 - $29,500 = $8,500
(c) Sales = Cost of Goods Sold + Gross Profit = $71,900 + $99,600 = $171,500
Net Income = Gross Profit - Operating Expenses = $99,600 - $39,500 = $60,100.
