Prepare a one-page income statement for the first year of a cash for gold exchan
ID: 2707525 • Letter: P
Question
Prepare a one-page income statement for the first year of a cash for gold exchange business using appropriate categories of revenue and expenses. Identifying categories and sub-categories of revenue and expenses. For example, under operating expenses list rent, utilities, payroll, depreciation expenses, insurance, and so on. This part of the assignment is designed to help you with your business plan assignment. If you have a service business and do not sell tangible items that require you to maintain an inventory, you will not have to include a Cost of Goods Sold section in your Income Statement. Please round off cents to the nearest whole dollar value - do not show cents values.
Explanation / Answer
Net sales
Cost of sales
Gross margin
Operating expenses
Depreciation and amortization
Selling, general and administrative expenses
Operating income
Other income (expense)
Dividends and interest income
Interest expense
Income before income taxes and extraordinary loss
Income taxes
Income before extraordinary loss
Extraordinary item: Loss on early extinguishment
of debt (net of income tax benefit of $750)
Net income
Common shares outstanding
Earnings per common share before
extraordinary loss
Earnings per share--extraordinary loss
Net income (per common share)