Question
Riverbed Inc. purchases its inventory on credit and uses a perpetual inventory system. The company began operations on January 1, 2021, and during 2021 purchased
Riverbed Inc. purchases its inventory on credit and uses a perpetual inventory system. The company began operations on January 1, 2021, and during 2021 purchased merchandise costing $330,000. Of this amount, 70% was paid in 2021 with the balance paid in 2022. The company sold 80% of its inventory for $760,000 on credit. Of this amount, 75% was collected in 2021 with the rest collected in 2022. Operating expenses of $130,000 were incurred in 2021 and all were paid by the end of the year. The income tax rate is 30% and all income taxes relating to 2021 were paid in 2022. The following table indicates key amounts on the 2021 financial statements: Calculate the missing amounts for all items. 2021 Statement of income data Sales [1] $ Cost of goods sold [2] $ Gross profit [3] $ Operating expenses [4] $ Income before income tax [5] $ Income tax expense [6] $ Net income [7] $ Statement of financial position data Accounts receivable [8] $ Inventory [9] $ Accounts payable [10] $ Income tax payable
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