8. The financial record of Adam Inc were destroyed by fire at the end of 2020. Fortunately, the controller had kept certain statistical data related to the income statement as below: a. The beginning inventory was $ 138,000. b. Sales discount was $ 5,500 c. 45,000 ordinary shares were outstanding. d. Interest expenses $30,000 e. Income tax rate 30% f. Cost of goods sold $750,000 g. Administrative expenses are 10% of cost of goods sold but only 5% of gross sales. h. Four fifth of the operating expenses related to sales activities. From the foregoing information, prepare an income statement.
8. The financial record of Adam Inc were destroyed by fire at the end of 2020. Fortunately, the controller had kept certain statistical data related to the income statement as below: a. The beginning inventory was $ 138,000. b. Sales discount was $ 5,500 c. 45,000 ordinary shares were outstanding. d. Interest expenses $30,000 e. Income tax rate 30% f. Cost of goods sold $750,000 g. Administrative expenses are 10% of cost of goods sold but only 5% of gross sales. h. Four fifth of the operating expenses related to sales activities. From the foregoing information, prepare an income statement.
Chapter10: Inventory
Section: Chapter Questions
Problem 15EA: Shetland Company reported net income on the year-end financial statements of $125,000. However,...
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