IThe following information applies to the questions displaye

IThe following information applies to the questions displayed below.] Ferguson Company was started in 2008 when t acquired $67,000 from the issue of common stock. The following data summarize the company\'s first three years\' operating activities. Assume that all transactions were cash transactions. 2008 2010 Purchases of inventory Sales Cost of goods sold Selling and administrative expenses 5,800 8,100 2009 $31,000 $13,400 $21,200 27,400 37,000 43,000 14,100 19,200 22,000 10,100

Solution

Solution:

Information is not complete for balance sheet.

Ferguson Company
Income Statement
	2008	2009	2010
Net Sales	27,400	37,000	43,000
Cost of goods sold	14,100	19,200	22,000
Gross Margin	13,300	17,800	21,000
Operating expenses
Selling and administrative expenses	5,800	8,100	10,100
Net Income	7,500	9,700	10,900