This exercise stresses the relationships between the information recorded in a periodic inventory system and the basic elements of an income statement. Each of the five lines represents a separate set of information. You are to fill in the missing amounts. A net loss in the right-hand column is to be indicated by placing brackets around the amount, as for example in line e.

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Begin- ing Net Cost of Ending Goods Gross Net Income Net Sales Inventory chases Inventory Sold Profit Expenses or (Loss) a' 240,000 76,000 104,000 35,200 b. 480,000 72,000 272,000 c. 630,000 207,000 d. 810,000 95,200 72,000 264,000 20,000 166,500 441,000 189,000 148,500 234,000 270,000 450,000 135,000 156,000 153,000 396,000 135,000 $15,000