Complete a Income statement worksheet using the data provided in the pictures
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
Complete a Income statement worksheet using the data provided in the pictures.
![Step #1- Complete the Income Statement heading.
Download the Income Statement and create a heading for Ted's Beds for the year ended December 31, 20XX.
Step #2-Complete the revenue section.
Complete the revenue section of the income statement using the data below.
Account
Amount
Sales
$456,000.00
Sales Discount
$575.00
Sales Retums and Allawances
$3,200.00
Step #3-Complete the cost of merchandise sold section and find gross profit on sales.
Complete the cost of merchandise sold section and find gross profit an sales using the data below. Remember that you
must compute to find Net Purchases, Total Cost of Merchandise Available for Sale. Cast af Merchandise Sold, and Grass
Profit on Sales.
Account
Amount
Merchandise Inventory, January 1, 20XX
$176,000.00
Purchases
$220,000.00
Purchases Discount
$1,300.00
Purchases Retums and Allowances
$2,000.00
Merchandise Inventory. December 31, 20XX $165,000.00
Step #4-Complete the expenses section and find net income or net loss.
Income Statement file complete the expenses section and find net income or net loss using the data below.
Account
Amount
Advertising Expense
$4,000.00
Cash Short and Over
$1.00
Credit Card Fee Expense
$5,000.00
Depreciation Expense-Office Equipment
$2,000.00
Depreciation Expense-Store Equipment
$3,000.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc42b784f-2957-4375-9bc0-68e2b5b52844%2Fdf268886-e90e-45a0-90be-0fc360b38d4b%2Fvxik3cp_processed.png&w=3840&q=75)
![Insurance Expense
$3,500.00
Miscellaneous Expense
S800.00
Payrall Taxes Expense
$a,000.00
Rent Expense
$12,000.00
Salary Expense
$85,000.00
Supplies Expense-Office
$2,300.00
Supplies Expense-Store
$3,200.00
Uncollectible Accounts Expense
$1,300.00
Utilities Expense
$4,000.00
Step #5-Complete the income statement and find net income after federal income tax.
Complete the income statement using the data below.
Account
Amount
Federal Income Tax Expense $22.000.00
Step #6-Complete the % of Net Sales
Finally, complete the % af Net Sales column by calculating the component percentages for Cost of Merchandise Sold,
Gross Profit on Sales, Total Expenses and Net Income after Federal Income Tax.
Component percentages are calculated by taking the specific income statement item and dividing that amaunt by the
amount for net sales.
Congratulations, you're done!
Before you submit:
"Did you complete all of the sections?
"Did you find net sales?
"Did you calculate cost of merchandise sold?
"Did you find gross profit an sales?
"Did you find net income before federal income tax?
"Did you complete your component percentages in the % of Net Sales column?
If you can answer yes to these questions then you are at the right place to submit your work for credit.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc42b784f-2957-4375-9bc0-68e2b5b52844%2Fdf268886-e90e-45a0-90be-0fc360b38d4b%2Fpwv7h9h_processed.png&w=3840&q=75)
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