For Glad Rags Shops, the following information is available for the year ended December 31, 2019:

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answerhappygod
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For Glad Rags Shops, the following information is available for the year ended December 31, 2019:

Post by answerhappygod »

Sales revenue $4,200,000
Cost of goods sold 2,650,000
Salaries expense 500,000
Rent expense 300,000
Administrative expense 250,000
Dividends declared $10,000
The income tax expense is $150,000.
Prepare an income statement for Glad Rags Shops.
Answer:
Glad Rags Shops
Income Statement
For the Year Ended December 31, 2019
Revenue:
Sales revenue $4,200,000
Total revenues $4,200,000
Expenses:
Cost of goods sold 2,650,000
Salaries expense 500,000
Rent expense 300,000
Administrative expense 250,000
Total expenses 3,700,000
Income before income
taxes 500,000
Less income tax expense 150,000
Net income $350,000
Difficulty: 2 Medium
Topic: Financial statements-Income statement
Learning Objective: 01-01 Recognize the information conveyed in each of the four basic
financial statements and the way that it is used by different decision makers (investors, creditors,
and managers).
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