Directions: Determine values for the missing items. Show all amounts as positive numbers even though expenses are subtracted on the income statement. Income Statement for Year Ending December 31, 2015 Sales revenue ? Cost of sales 123,000 Gross profit 162,000 Expenses: Wages 15,000 Advertising ? Depreciation 28,000 Amortization 4,000 Total expenses 65,000 Operating profit 97,000 Interest Expense ? Income (loss) before taxes 88,000 Tax expense ? Net income 53,000

Directions: Determine values for the missing items. Show all amounts as positive numbers even though expenses are subtracted on the income statement. Income Statement for Year Ending December 31, 2015 Sales revenue ? Cost of sales 123,000 Gross profit 162,000 Expenses: Wages 15,000 Advertising ? Depreciation 28,000 Amortization 4,000 Total expenses 65,000 Operating profit 97,000 Interest Expense ? Income (loss) before taxes 88,000 Tax expense ? Net income 53,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Directions: Determine values for the missing items. Show all amounts as positive numbers even though expenses are subtracted on the income statement.

Income Statement for Year Ending	December 31, 2015
Sales revenue	?
Cost of sales	123,000
Gross profit	162,000
Expenses:
Wages	15,000
Advertising	?
Depreciation	28,000
Amortization	4,000
Total expenses	65,000
Operating profit	97,000
Interest Expense	?
Income (loss) before taxes	88,000
Tax expense	?
Net income	53,000

Expert Solution

Step 1

Income statement is prepared to calculate the net income earned during the period.

Income statement is prepared In a classified format where expenses are deducted in a classified format to make it easier for analysis.

Gross profit = Sales revenue - Cost of sales

Operating profit = Gross profit - Total operating expenses

Income before taxes = Operating profit - Interest expense

Net income = Income before taxes - Tax expense

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions