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 OMR 138,000. b. Sales discount was OMR 25,500 c. 45,000 ordinary shares were outstanding. d. Interest expenses OMR 30,000 e. Income tax rate 30% f. Cost of goods sold OMR 750,000 g. Administrative expenses are 20% of cost of goods sold but only 10% of gross sales. h. Half of the operating expenses related to sales activities. From the foregoing information, prepare an income statement.Page
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 OMR 138,000. b. Sales discount was OMR 25,500 c. 45,000 ordinary shares were outstanding. d. Interest expenses OMR 30,000 e. Income tax rate 30% f. Cost of goods sold OMR 750,000 g. Administrative expenses are 20% of cost of goods sold but only 10% of gross sales. h. Half of the operating expenses related to sales activities. From the foregoing information, prepare an income statement.Page
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 OMR 138,000.
b. Sales discount was OMR 25,500
c. 45,000 ordinary shares were outstanding.
d. Interest expenses OMR 30,000
e. Income tax rate 30%
f. Cost of goods sold OMR 750,000
g. Administrative expenses are 20% of cost of goods sold but only 10% of gross sales.
h. Half of the operating expenses related to sales activities.
From the foregoing information, prepare an income statement.Page
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