Accounting and Finance Foundations

Unit 7

Accounting and Finance Foundations Unit 7: Financial Statements 555

Financial Statements Student Assignment

Chapter 18

18.1.3 Income Statement Word Problems (cont’d)

10. The Cameron Dress Boutique gives the following information for its operations: net sales, $234,985;
    inventory at the beginning of the month, $64,740; purchases during the month, $134,250; inventory at
    the end of the month, $59,260; operating expenses, $79,235. Write these figures in the correct spaces
    on the form below and show the:

a. cost of goods sold

b. gross profit on sales

c. net income or net loss

(Use a ( ) to indicate net loss.)

Cameron Dress Boutique

Income Statement

For Month Ended December 31, 20XX

Net Sales ____________

Less Cost of Goods Sold

Inventory, December 1 ____________

Add Purchases ____________

Goods Available for Sale ____________

Less Inventory, December 31 ____________

Cost of Goods Sold a. ____________

Gross Profit on Sales b. ____________

Less Operating Expenses ____________

Net income (or loss) c. ____________