The information below appeared on the Income Statement section of
the work sheet for The Greenhouse.
Income Statement Debit Credit
Income summary 6,800.40
Sales 264,048.10
Sales Discounts 5,941.00
Sales Returns and Allowances 7,921.40
Purchases 96,905.70
Transportation In 10,826.00
Purchases Discounts 3,168.60
Purch. Ret. and Allow. 4,224.80
Advertising Expense 12,444.10
Bankcard Fees Expense 5,281.00
Insurance Expense 1,050.00
Miscellaneous expense 2,732.00
Rent Expense 18,000.00
Supplies Expense 2,587.70
Utilities Expense 6,601.20
Fed. Corp. Inc. Tax Exp. 22,253.00
199,343.50 271,441.50
Net Income 72,098.00
271,441.50 271,441.50
Referring to the Income Statement in question #19, the ending of
merchandise inventory was _____ than the beginning merchandise inventory?
a. smaller
b. larger
To determine whether the ending merchandise inventory was smaller or larger than the beginning merchandise inventory, we need to look at the relevant information in the income statement.
The information provided in the income statement is only related to sales, purchases, and returns, and does not directly mention the beginning or ending merchandise inventory. Therefore, we cannot determine the change in merchandise inventory based on the information provided.