Chapter 18, Problem 9E

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.

Requirement-1:

To Prepare To prepare an income statement.

To determine

Concept Introduction-Current assets-

Current assets are balance sheet items which represents all the assets which are expected to convert into cash within a period of 12 months i.e. within 1 year.

Current assets section is part of balance sheet.

Requirement-2:

To prepare:

To prepare current asests section of the balance sheet.