For Glad Rags Shops, the following information is available for the year ended December 31, 2019:
Posted: Sat Aug 07, 2021 7:16 am
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).
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).