prepare the income statement Total sales revenue = 500,000 Sales return = 1% of sales Trade discount = 2% of sales Labor cost = 75,000 Cost of raw material = 25,000 Inventory consumed = 28,000 Factory overhead charges = 28,000 Selling cost = 80,000 Admn. Expenses = 74,000 Interest earned = 10,000 Royalties earned = 9,000 Gain from old capital stock = 9,000 Loss estimated due to fire = 72,000 Income tax = 20%
prepare the income statement Total sales revenue = 500,000 Sales return = 1% of sales Trade discount = 2% of sales Labor cost = 75,000 Cost of raw material = 25,000 Inventory consumed = 28,000 Factory overhead charges = 28,000 Selling cost = 80,000 Admn. Expenses = 74,000 Interest earned = 10,000 Royalties earned = 9,000 Gain from old capital stock = 9,000 Loss estimated due to fire = 72,000 Income tax = 20%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
prepare the income statement
Total sales revenue = 500,000
Sales return = 1% of sales
Trade discount = 2% of sales
Labor cost = 75,000
Cost of raw material = 25,000
Inventory consumed = 28,000
Factory overhead charges = 28,000
Selling cost = 80,000
Admn. Expenses = 74,000
Interest earned = 10,000
Royalties earned = 9,000
Gain from old capital stock = 9,000
Loss estimated due to fire = 72,000
Income tax = 20%
Transcribed Image Text:U2_2.wmv
Calculate net profit margin
Total sales revenue
=500,000
= 1% of sales
Sales return
Trade discount
Labor cost
= 2% of sales
=75,000
=25,000
= 28,000
= 28,000
Cost of raw material
Inventory consumed
Factory overhead charges
Selling cost
Admn. Expenses
Interest earned
Royalties earned
Gain from old capital stock
=80,000
=74,000
=10,000
=9,000
=9,000
Loss estimated due to fire
=72,000
=20%
Income tax
27:08 / 27:12
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