You are given the following information about Jazzy Inc. for the year 2015. Ther

Question

You are given the following information about Jazzy Inc. for the year 2015. There were no other transactions for the year. Make an income statement for Jazzy Inc. for 2015. What was Jazzy's income before tax not including extraordinary items?

Tax rate 40% Other selling, general and administrative expenses $408,000 Customer returns $240,000 Rent expense $1,080,000 Costs of goods sold $720,000 Interest expense $360,000 Damage to factory building from fire $552,000 Goodwil impairment $48,000 Sales $2,880,000

Explanation / Answer

                                                                        Jazzy Inc.

                                                     Income statement for the year 2015  

_______________________________________________________________________________________

Particulars                                                                                         $                                        $                       

Revenue from operations

Sales less returns ($28,80,000 - 240,000)                                                                             2,640,000

Less: Cost of goods sold                                                                                                         720,000

Selling,general and Administrative expenses                                    408,000

Rent expenses                                                                                10,80,000                        1,488,000

          Interest Expenses                                                                   360,000

          Goodwill impairment                                                                 48,000                          408,000

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