Share
Explore BrainMass

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

>> (See attached EXCEL file for full problem description) <<

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)

Attachments

Solution Preview

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