Use the following information to construct an income statement: Interest--------
ID: 2372944 • Letter: U
Question
Use the following information to construct an income statement:
Interest---------------------------------------$25,000
Sales------------------------------------------$950,000
Income tax rate-----------------------------25%
Selling and marketing expenses-------$160,000
General & administrative expenses---$200,000
Gross Profit----------------------------------$550,000
Depreciation---------------------------------$30,000
Cost of Goods sold------------------------$400,000
Please provide income statement in correct format.
Explanation / Answer
sales 950000
cost of goods sold (400000)
gross profit 550000
selling expenses (160000)
general expenses (200000)
operating profit before int,tax and dep 190000
depriciation (30000)
earning before int and tax 160000
interest (25000)
earning before tax 135000
tax (33750)
earning after tax 101250