Presented Below Is a Partially Completed Income Statement of Lake

question 45

Essay

Presented below is a partially completed income statement of Lake, Inc.for 2016. $\begin{array}{lr}\text { Net Sales } & \$\mathbf{A} \\\text { Cost of Sales: } & \\\text { Beginning Inventory } & \mathbf{B} \\\text { Net Purchases } & \underline{138,193} \\\text { Available for Sale } & 149,315\\\text { Less: Ending Inventory } & \mathbf{C} \\\text { Cost of Sales } & \underline{136,225} \\\text { Gross Profit } &{72,978} \\\text { Selling, General and Administrative Expenses } & \mathbf{D} \\\text { Operating Income }&\underline{\$ 9,083}\\\end{array}$ Using the partially completed income statement for Lake, Inc., determine each of the following for 2016.
A) Net Sales
B) Beginning Inventory
C) Ending Inventory
D) Selling, General and Administrative Expenses

• A) Net Sales
• B) Beginning Inventory
• C) Ending Inventory
• D) Selling, General and Administrative Expenses

---

Definitions:

Sundry Liabilities

Various small or infrequent debts and liabilities not classified in the main liabilities categories on a company's balance sheet.

One-Line Method

A consolidation technique, often used in accounting for investments, where only the net income and not the detailed financial activities of an affiliate are included in the parent company's financial statements.

Jointly Controlled Operations

Business activities where control and management responsibilities are shared among two or more parties, often under a joint venture agreement.

Disclosure

The act of making financial information known to the public, typically through financial statements and other official reports, ensuring transparency and accountability.