Asked by Gisselle Ochoa on Jun 08, 2024
Verified
Complete the following data taken from the condensed income statements for merchandising Companies A, B, and C. Company A Company B Company C Operating income $315$?$215 Sales ?865560 Gross profit 430?325 Operating expenses ?125? Cost of merchandise sold 545320?\begin{array} { | l | r | r | r | } \hline & \text { Company A } & \text { Company B } & \text { Company C } \\\hline \text { Operating income } & \$ 315 & \$ ? & \$ 215 \\\hline \text { Sales } & ? & 865 & 560 \\\hline \text { Gross profit } & 430 & ? & 325 \\\hline \text { Operating expenses } & ? & 125 & ? \\\hline \text { Cost of merchandise sold } & 545 & 320 & ? \\\hline\end{array} Operating income Sales Gross profit Operating expenses Cost of merchandise sold Company A $315?430?545 Company B $?865?125320 Company C $215560325??
Condensed Income Statements
A simplified financial statement that presents a company's net income and revenue summary over a specific period, omitting detailed line items.
Operating Income
Earnings from a firm's core business operations, excluding deductions of interest and tax.
Gross Profit
The financial metric calculated by subtracting the cost of goods sold from the total revenue, representing the profit made before deducting operating expenses.
- Ascertain the gross income by calculating the difference between sales and the cost of merchandise sold.
Verified Answer
CM
Charles MwansaJun 11, 2024
Final Answer :
? Company A Company B Company C Operating income $315$420$215 Sales 975865560 Gross profit 430545325 Operating expenses 115125110 Cost of merchandise sold 545320235\begin{array} { | l | r | r | r | } \hline & \text { Company A } & \text { Company B } & \text { Company C } \\\hline \text { Operating income } & \$ 315 & \$ 420 & \$ 215 \\\hline \text { Sales } & 975 & 865 & 560 \\\hline \text { Gross profit } & 430 & 545 & 325 \\\hline \text { Operating expenses } & 115 & 125 & 110 \\\hline \begin{array} { l } \text { Cost of merchandise } \\\text { sold }\end{array} & 545 & 320 & 235 \\\hline\end{array} Operating income Sales Gross profit Operating expenses Cost of merchandise sold Company A $315975430115545 Company B $420865545125320 Company C $215560325110235 OR rearranged in the order of the income statement: Company A Company B Company C Sales $975$865$560 Less cost of merchandise sold 545320235 Gross profit 430545325 Less operating expenses 115125110 Operating income 315420215\begin{array} { | l | r | r | r | } \hline & \textbf { Company A } & \textbf { Company B } & \textbf { Company C } \\\hline \text { Sales } & \$ 975 & \$ 865 & \$ 560 \\\hline \text { Less cost of } & & & \\\text { merchandise sold } & 545 & 320 & 235 \\\hline \text { Gross profit } & 430 & 545 & 325 \\\hline \text { Less operating } \\ \text { expenses } & 115 & 125 & 110 \\\hline \text { Operating income } & 315 & 420 & 215 \\\hline\end{array} Sales Less cost of merchandise sold Gross profit Less operating expenses Operating income Company A $975545430115315 Company B $865320545125420 Company C $560235325110215
Learning Objectives
- Ascertain the gross income by calculating the difference between sales and the cost of merchandise sold.