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# Income Statement Exercise for House Organs Inc

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Can you help me prepare a traditional income statement for November (Input all amounts as positive values except losses which should be indicated by a minus sign. Omit the "\$" sign in the response). The Income Statement ending is at the bottom, with blanks to be filled.

Information:
House of Organs, Inc., purchases organs from a well-known manufacturer and sells them at the retail level. The organs sell, on the average, for \$2,300 each. The average cost of an organ from the manufacturer is \$1,502. The costs that the company incurs in a typical month are presented below:

Costs Cost Formula
Selling:
Delivery of organs \$58 per organ sold
Sales salaries and commissions \$4,805 per month, plus 4% of sales
Utilities \$654 per month
Depreciation of sales facilities \$4,919 per month
Executive salaries \$13,584 per month
Depreciation of office equipment \$883 per month
Clerical \$2,490 per month, plus \$38 per organ sold
Insurance \$709 per month

During November, the company sold and delivered 60 organs.

Income Statement Question:

House Of Organs, Inc.
For the Month Ended November 30
\$

Selling expenses:
\$

Total selling expenses

\$

#### Solution Preview

Dear student,
The solution of traditional income statement is provided in a separate excel file attached in the acceptable format.

House of Organs
For the month ending November 30th ...

#### Solution Summary

Income statement exercise for House Organs Inc is examined. The cost that the company incurs in a typical month is presented.

\$2.19

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