16 of 20 This Quiz: 80 pts possit Question Help A set of financial statements fo

Question

16 of 20 This Quiz: 80 pts possit Question Help A set of financial statements for Rabbit Company follows (Click to view the financial statements) Due 09/04/18 Requirement Fill in the missing amounts (indicated with question marks) 09/04/18 Requirement 1. Fll in the missing amounts. Begin by completing the income statement 11:59pm 09/04/18 11:59pm Rabbit Company ncome Statement For the Year Ended December 31. 2012 09/04/18 Sales 675,000 11.59pm Cost of goods sold 375.000 70.000 09/04/18 1:59pm 09/11/18 11:59pm Gross proft on sales Administrative expenses Operating income Interest expense ncome tax expense Net income Now ill in the missing amounts on the balance sheet 10.000 88.500 09/11/18 11:59pm 09/18/18 11:59pm Enter any number in the edit helds and then continue to the next question 09/18/18 11:59pm Save for Later 09/25/18 Chapter 5 11:59pm

Explanation / Answer

Answer

Sales - Cost of Goods Sold = Gross Profit

Sales - Gross Profit = Cost of Goods Sold

$675,000 – 375,000 = Cost of Goods Sold

COGS = $300,000

Operating Income = Gross Profit – Adm. Expenses

= $375,000 – 70,000

Operating Income = $ 305,000

Net Income = Operating Income – Interest Expense – Income Tax

= $305,000 – 10,000 – 88,500

Net Income = $206,500

Note:

Income Tax Expense is not properly visible, i think that is 88,500 and if that amount is wrong kindly share the correct amount or just replace the amount and calculate net income accordingly.

Dear Student, if u have any doubt, plz feel free to reach me.

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