E6-22A

(Learning Objective 4: Compute cost of goods sold and gross profit) Supply the missing income statement amounts for each of the following companies (amounts adapted, in millions):

Company	Net Sales	Beginning Inventory	Net Purchases	Ending Inventory	Cost of Goods Sold	Gross Profit
Baker	$106,000	$21,000	$62,000	$17,000	(a)	(b)
Lawson	137,000	26,000	(c)	23,000	(d)	44,000
Ethan	(e)	(f)	54,000	24,000	62,000	29,000
Paulus	82,000	8,000	29,000	(g)	33,000	(h)

? Requirement

1. Prepare the income statement for Baker Company for the year ended December 31, 2012. Use the cost-of-goods-sold model to compute cost of goods sold. Baker