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    Lasar Technology, Inc.: calculating the value of depreciation expense and computing a partial Income Statement

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    Lasar Technology, Inc., had sales of $500,000, cost of goods sold of $180,000,
    selling and administrative expense of $70,000, and operating profit of $90,000.

    What was the value of depreciation expense?

    Set this problem up as a partial income statement, and determine depreciation expenses as the plug figure.

    Based on the information given you are calculating the value of depreciation expense and computing a partial Income Statement.

    The Income Statement format should be as follows:

    Name of Company
    Sales xxxxxxx
    Cost of Goods Sold -(xxxxxxx)
    Gross Profit (xxxxxxxx)
    Selling & Administrative Expense -(xxxxxxxxx)
    Depreciation Expense -(?)
    Operating Profit (xxxxxxxxxx)

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    https://brainmass.com/business/income-statement/76918

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    Hello!
    In this particular Income Statement, the following equation holds:
    Operating Profit = (Gross Profit) - (Selling & Adm. Expense) - (Depreciation Expense)

    Now, gross profit is calculated as Sales minus Cost of Goods Sold (CGS). Since Sales were $500,000 and CGS was ...

    Solution Summary

    You will find the answer to this puzzling assignment inside...

    $2.19

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