Compute the Missing Amounts for the Income Statement for Each

question 127

Essay

Compute the missing amounts for the income statement for each independent case. $$\begin{array} { l r c r } & \text { Case A } & \text { Case B } & \text { Case C } \\\text { Sales revenue } & \$ 800 & \$ 800 & \\\text { Beginning inventory } & 100 & & \$ 90 \\\text { Purchases } & 500 & 420 & \\\text { Total goods available } & & & \\\text { for sale } & & & \\\text { Ending inventory } & 150 & 110 & 160 \\\text { Cost of goods sold } & & & 340 \\\text { Gross margin } & & & \\\text { Expenses } & 300 & 400 & 420 \\\text { Net Income } & & ( 50 ) & 60\end{array}$$

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Definitions:

Commercial Paper

Short-term, unsecured promissory notes issued by corporations to finance their operations.

Transferee

An individual or entity that receives property, rights, or interests from another through a legal transfer.

Article 4A

Part of the Uniform Commercial Code that governs the transfer of funds initiated through electronic means by banks and other financial institutions.

Check Clearing

The process by which banks validate and process checks transactions to transfer funds from the payer's to the payee's account.