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

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– 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