statement with subtotals for Gross Profit, Operating Income, Income Before Tax a
ID: 2339644 • Letter: S
Question
statement with subtotals for Gross Profit, Operating Income, Income Before Tax and then a final total for Net Income. Each expense, revenue/income, and gain/loss item should be listed separately on the statement. You should assume the following: *Accounts Payable is only used for merchandise purchases Accrued Liabilities is only used for Other Operating Expenses .Other assets and liabilities are used as you would expect (i.e., Prepaid Insurance only for Insurance) It should be properly formatted and include a formal financial statement heading (three lines: Company Name, Name of Financial Statement, Period of Financial Statement).Explanation / Answer
The following T-accounts may help you understand how to derive the above figures.
For the year ending December 31, 2017 Revenue from Sales 296000 Less : Cost of goods sold 143800 Gross Profit 152200 Less: Operating expenses Salary expense 39700 Insurance expense 10580 Other operating expenses 2900 Depreciation expense 13100 Total Operating expenses 66280 Operating Income 85920 Non-operating Less :Interest expense 4400 Less :Loss on sale of land 9700 Add :Interest Income 1300 Income before tax 73120 Less : Income tax Expense 10200 Net Income 62920Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.