Question

Fill in the missing amounts.

Sunland Company Monty Corp.
Sales revenue $92,000 _______$
Sales returns and allowances _______ 5,200
Net sales 86,000 108,000
Cost of goods sold 55,900 _______
Gross profit ________ 41,040
Operating expenses 13,760 ______
Net income _______ 21,600

Answer 1

Step-by-step explanation:

Monty Corp:

`\text{Sales revenue - Net sales = Sales returns and allowance}`

`\text{Net sales - Cost of goods sold = Gross profit}`

`\text{Gross profit - Operating expenses = Net income}`

Sunland company:

`\text{Net sales + Sales return and allowance = Sales revenue}`

`\text{Net sales - Gross profit = Cost of goods sold}`

`\text{Gross profit - Net income = Operating expenses}`

Monty Corp Sunland Company

Sales revenue $92000 $103200

Sales return and allowances $6000 $5200

Net sales $86000 $108000

Cost of goods sold $55900 $66960

Gross profit $30100 $41040

Operating expense $13760 $19440

Net income $16340 $21600