Branson Electronics Company is a small, publicly traded company preparing its first quarter interim report to be mailed to shareholders. The following information for the quarter has been compiled: $180,000 35,000 Revenues Cost of goods sold Operating expenses: Fixed $59,000 48,000 107,000 Variable Fixed operating expenses include payments of $50,000 to an advertising firm to promote Branson through various media throughout the year. The income tax rate for Branson's level of operations in the first quarter is 30%, but management estimates the effective rate for the entire year will be 36%. Required: Prepare the income statement to be included in Branson's first quarter interim report.

Question
Branson Electronics Company is a small, publicly traded company preparing its first quarter interim report to be
mailed to shareholders. The following information for the quarter has been compiled:
$180,000
35,000
Revenues
Cost of goods sold
Operating expenses:
Fixed
$59,000
48,000
107,000
Variable
Fixed operating expenses include payments of $50,000 to an advertising firm to promote Branson through
various media throughout the year. The income tax rate for Branson's level of operations in the first quarter is
30%, but management estimates the effective rate for the entire year will be 36%.
Required:
Prepare the income statement to be included in Branson's first quarter interim report.

Image Transcription

Branson Electronics Company is a small, publicly traded company preparing its first quarter interim report to be mailed to shareholders. The following information for the quarter has been compiled: $180,000 35,000 Revenues Cost of goods sold Operating expenses: Fixed $59,000 48,000 107,000 Variable Fixed operating expenses include payments of $50,000 to an advertising firm to promote Branson through various media throughout the year. The income tax rate for Branson's level of operations in the first quarter is 30%, but management estimates the effective rate for the entire year will be 36%. Required: Prepare the income statement to be included in Branson's first quarter interim report.

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