1. Prepare a case basis income statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Accrual Basis Income Statement for the Year Ended December 31, 2012.
Net sales $900,000
Expenses
Cost of goods sold 550,000
Selling and administrative expense 133,000
Total expenses 683,000
Income before income taxes 217,000
Income taxes 65,400
Net income $151,600
Other data:
a. Cost of goods sold includes
b. Selling and administrative expense includes
c. Decrease in
d. Increase in
e. Increase in accounts payable, $10.000.
f. Increase in inventories, $30,000.
g. Decrease in income taxes payable, $20.000.
Required:
1. Prepare a case basis income statement.
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