Magio Company manufactures kitchen equipment used in hospitals. They distribute their products directly to the customer and, for the year ending 2019, they reported these revenues and expenses. Use this information to calculate the gross profit for the year 2019. Magio Company data Revenue and Expenses Sales revenue Cost of Goods Sold Operating expenses Amount $864,183 $496,357 $196,815
Balance Sheet:
The balance sheet is a summary of Assets, liabilities and equity accounts that reports the financial position of the business as on a specific date. Assets are further classified into current assets, long-term assets, fixed assets and intangible assets. Liabilities are further classified into current and long-term liabilities.
Income statement:
Income statement is a part of the financial statement that is prepared to calculate the net income earned by an organization. All the expenses are subtracted from the revenues to calculate the net income in the income statement. It is prepared for a particular period.
There are two ways to prepare an income statement − Single-step and Multi-step. In multi-step income statement, the net income is calculated after showing multiple steps. In this statement, operating items are separated from non-operating items.
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