Concept Introduction- Income statement- Income statement refers to the financial statement that evaluates the financial performance of the company. It shows the expenses, revenues and net income of a firm over specific period of time. Therefore evaluation of financial performance can be undertaken by identifying the revenues and expenses incurred by the business through both non-operating and operating activities. To Prepare- To prepare income statement.

Question

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Answer 1

Question

Chapter 18, Problem 14E

To determine

Concept Introduction-Income statement-

Income statement refers to the financial statement that evaluates the financial performance of the company. It shows the expenses, revenues and net income of a firm over specific period of time. Therefore evaluation of financial performance can be undertaken by identifying the revenues and expenses incurred by the business through both non-operating and operating activities.To Prepare-To prepare income statement.

Expert Solution & Answer

Answer to Problem 14E

Income statement

Particulars	Amount ($)	Amount ($)
Sales		1,250,000
Cost of goods sold		529,840
Gross profit		720,160
Operating expenses-
Advertising expenses	94,000
General and administrative exxpenses	129,300
Total operating expenses		223,300
Net income		496,860

Explanation of Solution

Given,

Sales = $1,250,000
Advertising expenses=$94,000
General and administrative exxpenses=$129,300
Cost of goods manufactured= $534,390
Finished goods inventory, Beginning = $62,750
Finished goods inventory, Ending = $67,300

Cost of goods sold= Cost of goods manufactured+ Finished goods inventory, Beginning − Finished goods inventory, EndingCost of goods sold=$534,390+$62,750−$67,300Cost of goods sold=$529,840

Gross profit = Sales−Cost of goods soldGross profit=$1,250,000−$529,840Gross profit=$720,160

Total operating expenses = Advertising expenses+ General and administrative exxpensesTotal operating expenses =$94,000+$129,300Total operating expenses =$223,300

Net income is calculated as follows-

Net income = Gross profit−Total operating expensesNet income =$720,160−$223,300Net income =$496,860

Conclusion:

Thus, Income statement is prepared.

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Answer 2

Question

Chapter 18, Problem 14E

To determine

Concept Introduction-Income statement-

Income statement refers to the financial statement that evaluates the financial performance of the company. It shows the expenses, revenues and net income of a firm over specific period of time. Therefore evaluation of financial performance can be undertaken by identifying the revenues and expenses incurred by the business through both non-operating and operating activities.To Prepare-To prepare income statement.

Expert Solution & Answer

Answer to Problem 14E

Income statement

Particulars	Amount ($)	Amount ($)
Sales		1,250,000
Cost of goods sold		529,840
Gross profit		720,160
Operating expenses-
Advertising expenses	94,000
General and administrative exxpenses	129,300
Total operating expenses		223,300
Net income		496,860

Explanation of Solution

Given,

Sales = $1,250,000
Advertising expenses=$94,000
General and administrative exxpenses=$129,300
Cost of goods manufactured= $534,390
Finished goods inventory, Beginning = $62,750
Finished goods inventory, Ending = $67,300

Cost of goods sold= Cost of goods manufactured+ Finished goods inventory, Beginning − Finished goods inventory, EndingCost of goods sold=$534,390+$62,750−$67,300Cost of goods sold=$529,840

Gross profit = Sales−Cost of goods soldGross profit=$1,250,000−$529,840Gross profit=$720,160

Total operating expenses = Advertising expenses+ General and administrative exxpensesTotal operating expenses =$94,000+$129,300Total operating expenses =$223,300

Net income is calculated as follows-

Net income = Gross profit−Total operating expensesNet income =$720,160−$223,300Net income =$496,860

Conclusion:

Thus, Income statement is prepared.

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Answer 3

Question

Chapter 18, Problem 14E

To determine

Concept Introduction-Income statement-

Income statement refers to the financial statement that evaluates the financial performance of the company. It shows the expenses, revenues and net income of a firm over specific period of time. Therefore evaluation of financial performance can be undertaken by identifying the revenues and expenses incurred by the business through both non-operating and operating activities.To Prepare-To prepare income statement.

Expert Solution & Answer

Answer to Problem 14E

Income statement

Particulars	Amount ($)	Amount ($)
Sales		1,250,000
Cost of goods sold		529,840
Gross profit		720,160
Operating expenses-
Advertising expenses	94,000
General and administrative exxpenses	129,300
Total operating expenses		223,300
Net income		496,860

Explanation of Solution

Given,

Sales = $1,250,000
Advertising expenses=$94,000
General and administrative exxpenses=$129,300
Cost of goods manufactured= $534,390
Finished goods inventory, Beginning = $62,750
Finished goods inventory, Ending = $67,300

Cost of goods sold= Cost of goods manufactured+ Finished goods inventory, Beginning − Finished goods inventory, EndingCost of goods sold=$534,390+$62,750−$67,300Cost of goods sold=$529,840

Gross profit = Sales−Cost of goods soldGross profit=$1,250,000−$529,840Gross profit=$720,160

Total operating expenses = Advertising expenses+ General and administrative exxpensesTotal operating expenses =$94,000+$129,300Total operating expenses =$223,300

Net income is calculated as follows-

Net income = Gross profit−Total operating expensesNet income =$720,160−$223,300Net income =$496,860

Conclusion:

Thus, Income statement is prepared.

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Answer 4

Question

Chapter 18, Problem 14E

To determine

Concept Introduction-Income statement-

Income statement refers to the financial statement that evaluates the financial performance of the company. It shows the expenses, revenues and net income of a firm over specific period of time. Therefore evaluation of financial performance can be undertaken by identifying the revenues and expenses incurred by the business through both non-operating and operating activities.To Prepare-To prepare income statement.

Expert Solution & Answer

Answer to Problem 14E

Income statement

Particulars	Amount ($)	Amount ($)
Sales		1,250,000
Cost of goods sold		529,840
Gross profit		720,160
Operating expenses-
Advertising expenses	94,000
General and administrative exxpenses	129,300
Total operating expenses		223,300
Net income		496,860

Explanation of Solution

Given,

Sales = $1,250,000
Advertising expenses=$94,000
General and administrative exxpenses=$129,300
Cost of goods manufactured= $534,390
Finished goods inventory, Beginning = $62,750
Finished goods inventory, Ending = $67,300

Cost of goods sold= Cost of goods manufactured+ Finished goods inventory, Beginning − Finished goods inventory, EndingCost of goods sold=$534,390+$62,750−$67,300Cost of goods sold=$529,840

Gross profit = Sales−Cost of goods soldGross profit=$1,250,000−$529,840Gross profit=$720,160

Total operating expenses = Advertising expenses+ General and administrative exxpensesTotal operating expenses =$94,000+$129,300Total operating expenses =$223,300

Net income is calculated as follows-

Net income = Gross profit−Total operating expensesNet income =$720,160−$223,300Net income =$496,860

Conclusion:

Thus, Income statement is prepared.

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Answer 5

Chapter 18, Problem 14E

To determine

Concept Introduction-Income statement-

Income statement refers to the financial statement that evaluates the financial performance of the company. It shows the expenses, revenues and net income of a firm over specific period of time. Therefore evaluation of financial performance can be undertaken by identifying the revenues and expenses incurred by the business through both non-operating and operating activities.To Prepare-To prepare income statement.

Expert Solution & Answer

Answer to Problem 14E

Income statement

Particulars	Amount ($)	Amount ($)
Sales		1,250,000
Cost of goods sold		529,840
Gross profit		720,160
Operating expenses-
Advertising expenses	94,000
General and administrative exxpenses	129,300
Total operating expenses		223,300
Net income		496,860

Explanation of Solution

Given,

Sales = $1,250,000
Advertising expenses=$94,000
General and administrative exxpenses=$129,300
Cost of goods manufactured= $534,390
Finished goods inventory, Beginning = $62,750
Finished goods inventory, Ending = $67,300

Cost of goods sold= Cost of goods manufactured+ Finished goods inventory, Beginning − Finished goods inventory, EndingCost of goods sold=$534,390+$62,750−$67,300Cost of goods sold=$529,840

Gross profit = Sales−Cost of goods soldGross profit=$1,250,000−$529,840Gross profit=$720,160

Total operating expenses = Advertising expenses+ General and administrative exxpensesTotal operating expenses =$94,000+$129,300Total operating expenses =$223,300

Net income is calculated as follows-

Net income = Gross profit−Total operating expensesNet income =$720,160−$223,300Net income =$496,860

Conclusion:

Thus, Income statement is prepared.

Answer 6

Chapter 18, Problem 14E

To determine

Concept Introduction-Income statement-

Income statement refers to the financial statement that evaluates the financial performance of the company. It shows the expenses, revenues and net income of a firm over specific period of time. Therefore evaluation of financial performance can be undertaken by identifying the revenues and expenses incurred by the business through both non-operating and operating activities.To Prepare-To prepare income statement.

Expert Solution & Answer

Answer to Problem 14E

Income statement

Particulars	Amount ($)	Amount ($)
Sales		1,250,000
Cost of goods sold		529,840
Gross profit		720,160
Operating expenses-
Advertising expenses	94,000
General and administrative exxpenses	129,300
Total operating expenses		223,300
Net income		496,860

Explanation of Solution

Given,

Sales = $1,250,000
Advertising expenses=$94,000
General and administrative exxpenses=$129,300
Cost of goods manufactured= $534,390
Finished goods inventory, Beginning = $62,750
Finished goods inventory, Ending = $67,300

Cost of goods sold= Cost of goods manufactured+ Finished goods inventory, Beginning − Finished goods inventory, EndingCost of goods sold=$534,390+$62,750−$67,300Cost of goods sold=$529,840

Gross profit = Sales−Cost of goods soldGross profit=$1,250,000−$529,840Gross profit=$720,160

Total operating expenses = Advertising expenses+ General and administrative exxpensesTotal operating expenses =$94,000+$129,300Total operating expenses =$223,300

Net income is calculated as follows-

Net income = Gross profit−Total operating expensesNet income =$720,160−$223,300Net income =$496,860

Conclusion:

Thus, Income statement is prepared.

Answer 7

Chapter 18, Problem 14E

To determine

Concept Introduction-Income statement-

Income statement refers to the financial statement that evaluates the financial performance of the company. It shows the expenses, revenues and net income of a firm over specific period of time. Therefore evaluation of financial performance can be undertaken by identifying the revenues and expenses incurred by the business through both non-operating and operating activities.To Prepare-To prepare income statement.

Answer 8

Expert Solution & Answer

Answer to Problem 14E

Income statement

Particulars	Amount ($)	Amount ($)
Sales		1,250,000
Cost of goods sold		529,840
Gross profit		720,160
Operating expenses-
Advertising expenses	94,000
General and administrative exxpenses	129,300
Total operating expenses		223,300
Net income		496,860

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Given,

Sales = $1,250,000
Advertising expenses=$94,000
General and administrative exxpenses=$129,300
Cost of goods manufactured= $534,390
Finished goods inventory, Beginning = $62,750
Finished goods inventory, Ending = $67,300

Cost of goods sold= Cost of goods manufactured+ Finished goods inventory, Beginning − Finished goods inventory, EndingCost of goods sold=$534,390+$62,750−$67,300Cost of goods sold=$529,840

Gross profit = Sales−Cost of goods soldGross profit=$1,250,000−$529,840Gross profit=$720,160

Total operating expenses = Advertising expenses+ General and administrative exxpensesTotal operating expenses =$94,000+$129,300Total operating expenses =$223,300