(Preparing an income statement) Prepare an income statement and a common-sized i

Question

(Preparing an income statement) Prepare an income statement and a common-sized income statement from the following information. Sales $525 comma 845525,845 Cost of goods sold 199 comma 561199,561 General and administrative expense 61 comma 92861,928 Depreciation expense 8 comma 6558,655 Interest expense 11 comma 66611,666 Income taxes 97 comma 61497,614 (Click on the icon located on the top-right corner of the data table above in order to copy its contents into a spreadsheet.) Complete the income statement below.(Round to the nearest dollar. NOTE: You may input expense accounts as negative values.) Income Statement $ Gross profits $ $ Total operating expenses $ Operating income (EBIT) $ Earnings before taxes $ Net income $

Explanation / Answer

Income Statement Common size Income Statement Sales $525,845.00 100.00% Less: Cost of good sold -$199,561.00 -37.95% Gross Profit $326,284.00 62.05% Less: General and administrative expense $61,928.00              Depreciation expense $8,655.00 Total operating Expense -$70,583.00 -13.42% Operating Income = EBIT $255,701.00 48.63% Less Interest -$11,666.00 -2.22% EBT $244,035.00 46.41% Less : Tax -$97,614.00 -18.56% Net income $146,421.00 27.84%

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