Q10. The financial record of Adam Inc were destroyed by fire at the end of 2020. Fortunately, the controller had kept certain statistical data related to the income statement as below: a. The beginning inventory was OMR 138,000. b. Sales discount was OMR 25,500 c. 45,000 ordinary shares were outstanding. d. Interest expenses OMR 10,000 e. Income tax rate 30% f. Cost of goods sold OMR 650,000 and gross sales OMR 1,500,000. g. Administrative expenses are 20% of cost of goods sold. h. Four fifth of the operating expenses related to sales activities. From the foregoing information, prepare an income statement.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Q10. The financial record of Adam Inc were destroyed by fire at the end of 2020.
Fortunately, the controller had kept certain statistical data related to the income statement as
below:
a. The beginning inventory was OMR 138,000.
b. Sales discount was OMR 25,500
c. 45,000 ordinary shares were outstanding.
d. Interest expenses OMR 10,000
e. Income tax rate 30%
f. Cost of goods sold OMR 650,000 and gross sales OMR 1,500,000.
g. Administrative expenses are 20% of cost of goods sold.
h. Four fifth of the operating expenses related to sales activities.
From the foregoing information, prepare an income statement.
Transcribed Image Text:Q10. The financial record of Adam Inc were destroyed by fire at the end of 2020. Fortunately, the controller had kept certain statistical data related to the income statement as below: a. The beginning inventory was OMR 138,000. b. Sales discount was OMR 25,500 c. 45,000 ordinary shares were outstanding. d. Interest expenses OMR 10,000 e. Income tax rate 30% f. Cost of goods sold OMR 650,000 and gross sales OMR 1,500,000. g. Administrative expenses are 20% of cost of goods sold. h. Four fifth of the operating expenses related to sales activities. From the foregoing information, prepare an income statement.
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