Sharon's Auto Supplies runs and owns a vehicle repair garage.she supplies the following information for the year ended 31st May 2017.
$
Premises 180000
Break down recovery truck 24000
Office Furniture 8000
Trade Receivables 3450
Trade payables 1673
Inventory at 1June 2014 945
Purchases 48620
Sales 92431
Wages and General Expenses 23789
local taxes 872
Insurances 2150
advertising 450
Stationery 357
Mortgage On premises 160000
drawings 15750
Bank balance Capital at 1st June 2014 849
Capital at 1 June 2014 55128
Sharon's has valued her inventory at 31st May 2015 at $1045.
Required:prepare an income statement for the year ended 31May 2015 and a statement of financial position at 31May 2015.
| Sharon's Auto Supplies | ||
| Income Statement | ||
| For the year ended May 31,2017 | ||
| Sales | $92,431 | |
| Inventory at 1 June 2014 | $945 | |
| Purchases | $48,620 | |
| Cost of goods available for sale | $49,565 | |
| Inventory at 31st May 2015 | ($1,045) | |
| Cost of goods sold | $48,520 | |
| Gross profit | $43,911 | |
| Operating expenses: | ||
| Wages and general expenses | $23,789 | |
| Local taxes | $872 | |
| Insurances | $2,150 | |
| Advertising | $450 | |
| Stationery | $357 | |
| Total operating expenseses | $27,618 | |
| Operating income | $16,293 |
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