Identify the errors in the following income statement: Curbstone Company Income Statement For the Year Ended August 31, 20Y5 Sales . . . . . . . . . . . . . . . . . . . . . 8,595,000 Cost of merchandise sold . . . . . . . . . . . . . . . . . . . . . . . 6,110,000 Income from operations . . .. . . . . . . . . . . . . . . . . . $2,485,000 Expenses: Selling expenses . . . . . . . . . . . . . . . . . . . . . . 800,000 Administrative expenses . . . . . . . . . . . . . . .575,000 Delivery expense . . . . . . . . . . . . . . . . . . . . . .425,000 Total expenses . . . . . . . . . . . . . . . . . . . . . 1,800,000 $685,000 Other expense: Interest revenue . . . . . . . . . . . . . . . . . . . . . . . 45,000 Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . $640,000
Identify the errors in the following income statement:
Curbstone Company Income Statement For the Year Ended August 31, 20Y5
Sales . . . . . . . . . . . . . . . . . . . . . 8,595,000
Cost of merchandise sold . . . . . . . . . . . . . . . . . . . . . . . 6,110,000
Income from operations . . .. . . . . . . . . . . . . . . . . . $2,485,000
Expenses:
Selling expenses . . . . . . . . . . . . . . . . . . . . . . 800,000
Administrative expenses . . . . . . . . . . . . . . .575,000
Delivery expense . . . . . . . . . . . . . . . . . . . . . .425,000
Total expenses . . . . . . . . . . . . . . . . . . . . . 1,800,000
$685,000
Other expense:
Interest revenue . . . . . . . . . . . . . . . . . . . . . . . 45,000
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . $640,000
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