Grappa, Inc.

Grappa, Inc. reported the following information for 2017 and 2016:

2017 2016

Sales $951,200 $890,000

Sales discounts 12,000 23,000

Purchases 580,000 600,000

Inventory, December 31 46,000 40,000

Transportation-in 18,000 19,000

Purchase discounts 4,000 5,000

15. Refer to the information for Grappa, Inc.

How much is net sales for 2017? What other components that Grappa did not report could be included in this

computation?

16. Presented below is a partially completed income statement of Lake, Inc. for 2016.

Net Sales $ A

Cost of Sales:

Beginning Inventory B

Net Purchases 138,193

Available for Sale 149,315

Less: Ending Inventory C

Cost of Sales 136,225

Gross Profit 72,978

Selling, General and Administrative Expenses D

Operating Income $ 9,083

Using the partially completed income statement for Lake, Inc., determine each of the following for 2016.

A) Net Sales

B) Beginning Inventory

C) Ending Inventory

D) Selling, General and Administrative Expenses