Question Content Area

Income Statement Calculations

Revolve Company's income statement information for 2016 and 2017 (a sole proprietorship) is as follows:

		2016		2017
Cost of goods sold		$ (a)		$59,300
Interest expense		600		0
Selling expenses		(b)		10,800
Operating income		22,600		(d)
Sales (net)		96,000		(e)
General expenses		7,900		(f)
Net income		(c)		22,700
Interest revenue		0		600
Gross profit		40,000		41,200

Required:

Compute the missing amounts labeled (a) through (f). All the necessary information is listed. (Hint: It is not necessary to calculate your answers in alphabetical order.)

(a) Cost of goods sold	$fill in the blank 1
(b) Selling expenses	$fill in the blank 2
(c) Net income	$fill in the blank 3
(d) Operating income	$fill in the blank 4
(e) Sales (net)	$fill in the blank 5
(f) General expenses	$fill in the blank 6