Fill in the Blanks (A)through (G)for the Corman Company for Each

question 262

Essay

Fill in the blanks (a)through (g)for the Corman Company for each of the income statements for years 1 and 2. $\begin{array}{c} \text {Corman Company}\\ \text {Income Statements}\\ \text {For the years ended December 31}\\\begin{array}{|l|r|r|}\hline& \text { Year 1 } & \text { Year 2 } \\\hline \text { Sales } & \$ 10,000 & \text { (e) } \\\hline \text { Cost of goods sold } & & \\\hline \text { Merchandise inventory (beginning) } & 375 & 750 \\\hline \text { Total cost of merchandise purchases } & 3,625 & 4,875 \\\hline \text { Merchandise inventory (ending) } & 750 & (\mathrm{~d}) \\\hline \text { Cost of goods sold } & (\mathrm{a}) & \underline{5,000} \\\hline \text { Gross profit } & 6,750 & 5,200 \\\hline \text { Operating expenses } & \underline{3,750} & (\mathrm{c}) \\\hline \text { Net income } & \text { (b) } & \$ 2,500 \\\hline\end{array}\end{array}$

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Definitions:

Future Value

Future value is the value of a current asset at a specified date in the future based on an assumed rate of growth over time.

Present Value

The current worth of a future sum of money or cash flows, given a specified rate of return.

Interest Rate

The percentage of a sum of money charged for its use, indicating the cost of borrowing or the return on savings.

Present Value

The current financial value of a future financial sum or sequences of payments, assessed with a predefined rate of earnings.