>> (See attached EXCEL file for full problem description) <<
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
Cost of Goods Sold -(xxxxxxx)
Gross Profit (xxxxxxxx)
Selling & Administrative Expense -(xxxxxxxxx)
Depreciation Expense -(?)
Operating Profit (xxxxxxxxxx)
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 ...
You will find the answer to this puzzling assignment inside...