Exercise 315 Presented below is financial information for tw

Exercise 3-15 Presented below is financial information for two different companies Compute the missing amounts. Swifty Company Nash Company Sales revenue Sales returns and allowances Net sales Cost of goods sold Gross profit Operating expenses Net income 96,860 a) 4,730 86,150 91,790 61,500 e) 34,520 24,880 9,640 14,300 c) Click if you would like to Show Work for this question: Open Show Work

Solution

Working notes:

a) Sales returns and allowances = Sales revenue - Net sales

= 96860 - 86150 = 10,710

b) Gross profit = Net sales - Cost of goods sold

= 86150 - 61500 = 24,650

c) Net income = Gross profit - operaitng expenses

= 24650 - 14300 = 10,350

d) Sales revenue = Net sales + Sales return and allownces

= 91790+4730 = 96,520

e) COGS = Net sales - gross profit

= 91790 - 34520 = 57,270

	Swift Company	Nash Company
Sales revenue	96,860	96,520
Sales returns and allowances	10,710	4,730
Net sales	86,150	91,790
Cost of goods sold	61,500	57,270
Gross profit	24,650	34,520
Operating expenses	14,300	24,880
Net income	10,350	9,640