Cases 800 900 $800 Revenue Sales following independent cases: T Cases 7-4 Inferring Merchandise Purchases 100 200 $100 Inventory 1,000 Beginning 800 900 $700 Revenue Sales 600 700 $700 Purchases 100 200 $100 You need to know the amount of Cost of Goods Sold and Purchases for the year. Inventory Beginning was $5,889 million and Net Income was $1,204 million. For your analysis, you determine that in the previous year it was $1,477 million. Net Sales for the current year were $14,664 million. Gross notes show that the ending inventory for Gap in the current year was $1,602 million and in has just completed a review of the annual report of The Gap, Inc., for the year ended January, Banana Republic, and Old Navy. Assume that you are employed as a stock analyst and your Gap, Inc., is a specialty retailer that operates stores selling clothes under the trade names E7-3 Inferring Missing Amounts Based on Income Statement Relationships U Available Total 900 800 $800 Purchases 200 ? $500 Inventory Ending Available for Sale Cost of Goods Sold Cost of CHAPTER7 650 200 7 $300 Goods Sold Cost of 400 S? Gross Profit LO7-2 LO7-2 The Gap, Inc. 250 300 150 5? Ending Inventory Cost of 150 150 $200 Expenses and General Selling S Operations Income from 500 400 57 Gross Profit 100
