Sales Sales Revenue Less : Sales Returns and Allowances Sales Discounts Net Sales Cost of Goods Sold Gross Profit Operating Expenses Freight-Out Advertising Expense Salaries and Wages Expense Utilities Expense Depreciation Expense Total Operating Expenses Income From Operations Other Revenues and Gains Interest Revenue Other Expenses and Losses Interest Expense Net Income /(Loss) $ $ 51,000 10,000 2,400 15,600 83,000 24,000 3,300 $ 631,000 2843 61,000 570,000 410,400 159,600 128,300 31,300 21,600 24,400
Sales Sales Revenue Less : Sales Returns and Allowances Sales Discounts Net Sales Cost of Goods Sold Gross Profit Operating Expenses Freight-Out Advertising Expense Salaries and Wages Expense Utilities Expense Depreciation Expense Total Operating Expenses Income From Operations Other Revenues and Gains Interest Revenue Other Expenses and Losses Interest Expense Net Income /(Loss) $ $ 51,000 10,000 2,400 15,600 83,000 24,000 3,300 $ 631,000 2843 61,000 570,000 410,400 159,600 128,300 31,300 21,600 24,400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
Only find: Net Income/Loss, please!
Transcribed Image Text:Sales
Sales Revenue
Less
Sales Returns and Allowances
Sales Discounts
Net Sales
Cost of Goods Sold
Gross Profit
Operating Expenses
Freight-Out
Advertising Expense
Salaries and Wages Expense
Utilities Expense
Depreciation Expense
Total Operating Expenses
Income From Operations
Other Revenues and Gains
Interest Revenue
Other Expenses and Losses
Interest Expense
Net Income /(Loss)
$
$
51,000
10,000
2,400
15,600
83,000
24,000
3,300
$
$
631,000
61,000
570,000
410,400
159,600
128,300
31,300
21,600
24,400
Expert Solution
Step 1: Meaning of net profit or net income :
Gross profit from the trading account is taken to the credit side of this account along with other income items like interest received and commission received. The debit side of the profit and loss account includes all indirect expenses of the firm like administrative expenses, depreciation, bad debts, interest, discount, selling and distribution expenses, and financial expenses. The figure balanced between the debit and the credit side is the company’s true profit or net profit.
Income from operations = Gross profit - Operating expenses
Net income = Income from operations + Other revenue and gains - Other expenses and losses
Step by step
Solved in 3 steps
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education