Find the Missing Data $\quad$ $\quad$ $\quad$ $\quad$

question 5

Multiple Choice

Find the missing data. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ CINNAMON AND SPICE, INC.
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Income Statement
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ For the Year Ended December 31, 2008
$\begin{array}{l}\begin{array}{|c|r|}\hline\text { Revenues }&\\ \hline \text { Sales Revenue } & \$ 3,810,200 \\\hline \text { Total Revenues } & ? \\\hline & \\\hline \text { Expenses } & ? \\\hline \text { Wages Expense } & 1,314,900 \\\hline \text { Advertising and Promotion Expenses } & 482,200 \\\hline \begin{array}{c}\text { Other Selling and Administrative } \\\text { Expenses }\end{array} & ? \\\hline \text { Interest Expense } & 225,600 \\\hline \text { Income Tax Expense } & 117,700 \\\hline \text { Other Expenses } & 253,700 \\\hline \text { Total Expenses } & \underline{3,445,600} \\\hline & \$?\\\hline\end{array}\end{array}$

• A)Total revenues are $3,810,200,other selling and administrative expenses are $1,051,500,and net income is $364,600.
• B)Total revenues are $2,495,300,other selling and administrative expenses are $1,051,500,and net income is ($950,300).
• C)Total revenues are $364,600,other selling and administrative expenses are $3,081,000,and net income is $7,255,800.
• D)Total revenues are $3,810,200,other selling and administrative expenses are $364,600,and net income is $7,255,800.

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Definitions:

Raw Materials

Basic substances in their natural, modified, or semi-processed states, used as inputs for production.

Cost of Goods Sold LIFO

An inventory costing method where the last items placed into inventory are the first ones to be recorded as sold, which can affect the cost of goods sold and inventory valuation.

LIFO Reserve

LIFO reserve is the difference between the cost of inventory calculated under the Last In, First Out (LIFO) method and its cost calculated under the First In, First Out (FIFO) method.

FIFO Estimate

An accounting technique, "First In, First Out," estimating the value of inventory or assets on the assumption that the first items acquired are the first ones to be used or sold.