prepare the income statementTotal sales revenue = 500,000Sales return = 1% of salesTrade discount = 2% of salesLabor cost = 75,000Cost of raw material = 25,000Inventory consumed = 28,000Factory overhead charges = 28,000Selling cost = 80,000Admn. Expenses = 74,000Interest earned = 10,000Royalties earned = 9,000Gain from old capital stock = 9,000Loss estimated due to fire = 72,000Income tax = 20% U2_2.wmvCalculate net profit marginTotal sales revenue=500,000= 1% of salesSales returnTrade discountLabor cost= 2% of sales=75,000=25,000= 28,000= 28,000Cost of raw materialInventory consumedFactory overhead chargesSelling costAdmn. ExpensesInterest earnedRoyalties earnedGain from old capital stock=80,000=74,000=10,000=9,000=9,000Loss estimated due to fire=72,000=20%Income tax27:08 / 27:12

An income statement is a statement of a business entity that shows the financial position during an…

prepare the income statement Total sales revenue = 500,000 Sales return = 1% of sales Trade discount = 2% of sales Labor cost = 75,000 Cost of raw material = 25,000 Inventory consumed = 28,000 Factory overhead charges = 28,000 Selling cost = 80,000 Admn. Expenses = 74,000 Interest earned = 10,000 Royalties earned = 9,000 Gain from old capital stock = 9,000 Loss estimated due to fire = 72,000 Income tax = 20%

prepare the income statement Total sales revenue = 500,000 Sales return = 1% of sales Trade discount = 2% of sales Labor cost = 75,000 Cost of raw material = 25,000 Inventory consumed = 28,000 Factory overhead charges = 28,000 Selling cost = 80,000 Admn. Expenses = 74,000 Interest earned = 10,000 Royalties earned = 9,000 Gain from old capital stock = 9,000 Loss estimated due to fire = 72,000 Income tax = 20%

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 87PSB

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