The Carlsbad Company income statement for the year ended February 28, 20Y9 conta
ID: 2340706 • Letter: T
Question
The Carlsbad Company income statement for the year ended February 28, 20Y9 contains error CARLSBAD COMPANY Income Statement For the Year Ended February 28, 20Y9 Revenue from sales: Sales $6,600,000 Add: Sales returns and allowances $180,000 Sales discounts 90,000 270,000 Gross sales $6,870,000 3,975,000 $2,895,000 Cost of merchandise sold Income from operations Expenses Selling expenses Administrative expenses Delivery expense $1,200,000 900,000 75,000 2,175,000 $720,000 60,000 $660,000 Total expenses Other expense: Interest revenue Gross profitExplanation / Answer
Answer
Income Statement
For the year ended 28 Feb
Revenue from Sales:
Sales
$ 6,600,000.00
Less: Sales Return & Allowances
$ 180,000.00
Sales Discount
$ 90,000.00
$ 270,000.00
Net Sales
$ 6,330,000.00
Cost of Merchandise Sold
$ 3,975,000.00
Gross Profits
$ 2,355,000.00
Expenses:
Selling Expenses
$ 1,200,000.00
Administrative expenses
$ 900,000.00
Delivery Expenses
$ 75,000.00
Total Expenses
$ 2,175,000.00
Operating Income
$ 180,000.00
Other Income:
Interest Revenue
$ 60,000.00
Net Income
$ 240,000.00
Income Statement
For the year ended 28 Feb
Revenue from Sales:
Sales
$ 6,600,000.00
Less: Sales Return & Allowances
$ 180,000.00
Sales Discount
$ 90,000.00
$ 270,000.00
Net Sales
$ 6,330,000.00
Cost of Merchandise Sold
$ 3,975,000.00
Gross Profits
$ 2,355,000.00
Expenses:
Selling Expenses
$ 1,200,000.00
Administrative expenses
$ 900,000.00
Delivery Expenses
$ 75,000.00
Total Expenses
$ 2,175,000.00
Operating Income
$ 180,000.00
Other Income:
Interest Revenue
$ 60,000.00
Net Income
$ 240,000.00