Prepare an Income Statement based on the following: please show calculations
Prepare an Income Statement based on the following: please show calculations
– gross sales = 2346217
– taxes = 9.3% of net sales
– sales expenses = 12092
– building depreciation = 1 year depreciation from Balance Sheet
– discount on sales = 3% of gross sales
– administrative expense = 14598
– cost of goods sold = 3x merchandise inventory from Balance Sheet
– sales returned = 2.5% gross sales
– interest expense = 1 3/4% of net sales
– income from other sources = 49876
– depreciation on equipment = 1/2 year depreciation from Balance Sheet
IV. Based on information in the Balance Sheet or Income Statement find, A) Return on Sales Ratio, B) Current Ratio, and the C) Inventory Turnover Ratio.
Balance Sheet
I. Current Assets I. Current Liabilities
Cash 1320000 – Note Payable 175000
Inventory 2550 – taxes 18810
pre-paid expense 3250 -commissions 18600
Accounts receivable 32000 – salaries 120179
promissory note 232000 – supplies 18750
bond 108000 – equipment 90000
A) TCA 1647800 A) TCL 438089
II. Fixed Assets II. L-T-L
Furniture 21000 – Equipment 652619
depreciation – L-T loan 68246
= 6000/year B) TLTL 720865
Equipment 125000 III. Owner’s Equity
depreciation – common shares 109375
= 25000/year – preferred shares 82000
– retained earnings 1562046 C) TOE 1752421
Building 560000
depreciation
= 35000/year _________
B) TFA 706000
III. Intangible Assets
Patent 19030
Charity 250895
Copyright 148600
Scholarship 90000
C) TIA 508525
Total Assets 2912325 Total L+OE 2912325
