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

Want to see more full solutions like this?

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.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

What is material quantity variance

Amish Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $276,660 for the year, and machine usage is estimated at 125,300 hours. For the year, $296,534 of overhead costs are incurred and 132,300 hours are used. Compute the manufacturing overhead rate for the year.

Accounting answer?

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.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

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.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

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.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

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