Purchase Solution

Creating an Income Statement

Not what you're looking for?

Ask Custom Question

The items below are from an income statement, but are not in the final order that they should appear in the Income Statement. Take this information and construct a complete Income Statement from it. Some of the figures are missing. We are to calculate these.

Net Income $83,962
Income Taxes (Use 25% MTR)
Cost of Goods Sold
Gross Sales $826,250
Beginning Inventory $125,000
Selling Expenses $85,000
Purchases $662,000
General and Admin. Expense $118,300
Ending Inventory $296,000
Returns $20,000
Net Sales
Income Before Taxes $111,950

Using the income statement categories we came up with in part 1 of this assignment, we are to prepare an initial income statement for the first year of a business plan. Please expand on the sub-categories as appropriate. For example, for operating expenses list rent, utilities, payroll, depreciation expenses, insurance, etc.

Purchase this Solution

Solution Summary

The items below are from an income statement, but are not in the final order that they should appear in the Income Statement. Take this information and construct a complete Income Statement from it. Some of the figures are missing. We are to calculate these.

Net Income $83,962
Income Taxes (Use 25% MTR)
Cost of Goods Sold
Gross Sales $826,250
Beginning Inventory $125,000
Selling Expenses $85,000
Purchases $662,000
General and Admin. Expense $118,300
Ending Inventory $296,000
Returns $20,000
Net Sales
Income Before Taxes $111,950

Using the income statement categories we come up with in part 1 of this assignment, we are to prepare an initial income statement for the first year of a business plan. Please expand on the sub-categories as appropriate. For example, for operating expenses list rent, utilities, payroll, depreciation expenses, insurance, etc

Solution Preview

For your review, I have attached a formatted Excel spreadsheet containing ...

Purchase this Solution


Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Operations Management

This quiz tests a student's knowledge about Operations Management