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

question 60

Essay

Fill in the blanks (a)through (g)for the Hendricks Company for each of the income statements for 2009,2010 and 2011.
$\begin{array}{c}\text {Hendricks Company}\\\text {Income Statements}\\\text {For the vears ended December 31}\\\begin{array}{|l|r|r|r|}\hline & 2009 & 2010 & 2011 \\\hline \text { Sales } & \$ 7,500 & \$ 10,000 & (\mathrm{f}) \\\hline \text { Cost of goods sold } & & & \\\hline \text { Merchandise inventory (beginning) } & (\mathrm{a}) & 375 & 750 \\\hline \text { Total cost of merchandise purchases } & 2,400 & 3,625 & 4,875 \\\hline \text { Merchandise inventory (ending) } & \underline{(b)} & \underline{750} & \underline{625} \\\hline \text { Cost of goods sold } & \underline{2,770} & \underline{(\mathrm{d})} & \underline{5,000} \\\hline \text { Gross profit } & (\mathrm{c}) & 6,750 & 5,200 \\\hline \text { Operating expenses } & 3,750 & 3,750 & (\mathrm{~g}) \\\hline \text { Net income } & \$ 980 & (\mathrm{e}) & \$ 2,500\\\hline \end{array}\end{array}$

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Definitions:

Strict Liability

A legal doctrine that holds a party responsible for damages or harm caused, regardless of negligence or intent.

Rural Setting

An environment or location characterized by countryside landscapes, often with agricultural lands, small communities, and lower population density.

Assumption of Risk

A legal doctrine whereby an individual knowingly exposes themselves to danger and is considered to have voluntarily assumed the risk of injury.

Product Liability

The legal responsibility that manufacturers, distributors, suppliers, retailers, and others who make products available to the public bear for injuries those products cause.