Jenkins Company has the following account balances, extracted from its multiple-step income statement for the current year. Compute the missing amounts.
Sales = ?
Sales Returns and Allowances = 4,700
Sales Discounts = 3,900
Net Sales = 105,100
Cost of Goods Sold = 51,800
Gross Profit = ?
Selling Expenses = 10,700
General and Administrative Expenses = ?
Total Operating Expenses = ?
Net Income = 35,100
The income statement for a given firm may be prepared by using a single-step method or a multi-step method for a given period. It is one of the four prominent financial statements prepared by any firm, others being, the balance sheet, the cash flow statement and the statement of change in the shareholders' equity.
Answer and Explanation:
The sales revenue is given by:
- = Net Sales + Sales Discounts + Sales Returns and Allowances
- = $105,100 + $3,900 + $4,700
- = $113,700
The gross profit is given by:
- = Net sales - cost of goods sold
- = $105,100 - $51,800
- = $53,300
The total operating expenses is given by:
- = Gross profit - net income
- = $53,300 - $35,100
- = $18,200
The general and administrative expenses is given by:
- = Total operating expenses - selling expenses
- = $18,200 - $10,700
- = $7,500
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from Accounting 101: Financial AccountingChapter 2 / Lesson 2