Prepare a formal income statement that contains the relevant subtotals. Show val

Question

Prepare a formal income statement that contains the relevant subtotals. Show values in whole dollars (no cents). Assume that no taxes are due on asset purchases or sales.   Show excel formula's/calculations.

Beginning of year During Year End of year Cash On Hand $305,500 Quantity Sold 52,500 Quantity Produced 63,000 Sales Price $45.00 Cost per unit to produce $25.40 Staff Expenses $426,400 Facility Expenses $278,200 Asset Sale $1,755,300 Asset Purchase $2,205,000 Tax rate 25% Inventory $75,000 $64,000 Accounts Receivable $47,000 $48,000 Accounts Payable $86,000 $82,000 Depreciation $82,000 Interest Paid on Loan $63,000 Loan Principle payment $152,000 Dividends $108,000

Explanation / Answer

Answer: Income statement:

Particulars Amount ($) Description Sales 2362500 52500*45 Add: Closing stock 64000 Less: Opening stock 75000 Less: production cost 1600200 63000*25.40 Gross margin 751300 Less: Other expense Staff Expenses 426400 Facility expense 278200 Depreciation 82000 Interest paid on loan 63000 Add: Dividend 108000 Net income 9700

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