Chapter 6, Problem 6.23AE

 LO 5

(Learning Objective 5: Compute cost of goods sold and gross profit) Supply the missing income statement amounts for each of the following companies:

Requirement

  1.    Prepare the income statement for Sutherland Company for the year ended December 31, 2018. Use the cost-of-goods-sold model to compute cost of goods sold. Sutherland’s operating and other expenses for the year were $36,000. Ignore income tax.

  Note: E6-24A builds on E6-23A with a profitability analysis of these companies.