Question

​(Preparing an income statement​) Prepare an income statement and a​ common-sized income statement from the following...

​(Preparing an income statement​) Prepare an income statement and a​ common-sized income statement from the following information. Sales ​$525 comma 845525,845 Cost of goods sold 199 comma 561199,561 General and administrative expense 61 comma 92861,928 Depreciation expense 8 comma 6558,655 Interest expense 11 comma 66611,666 Income taxes 97 comma 61497,614 ​(Click on the icon located on the​ top-right corner of the data table above in order to copy its contents into a spreadsheet.​) Complete the income statement below.  ​(Round to the nearest dollar. NOTE​: You may input expense accounts as negative​ values.) Income Statement $ Gross profits $ $ Total operating expenses $ Operating income (EBIT) $ Earnings before taxes $ Net income $

Homework Answers

Answer #1
Income Statement Common size Income Statement
Sales $525,845.00 100.00%
Less: Cost of good sold -$199,561.00 -37.95%
Gross Profit $326,284.00 62.05%
Less: General and administrative expense $61,928.00
             Depreciation expense $8,655.00
Total operating Expense -$70,583.00 -13.42%
Operating Income = EBIT $255,701.00 48.63%
Less Interest -$11,666.00 -2.22%
EBT $244,035.00 46.41%
Less : Tax -$97,614.00 -18.56%
Net income $146,421.00 27.84%
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