# Revolve Company's income statement information for 2016 and 2017 (a sole proprietorship) is as...

## Question:

Revolve Company's income statement information for 2016 and 2017 (a sole proprietorship) is as follows:

Compute the missing amounts labeled (a) through (f).

 2016 2017 Cost of goods sold $(a)$59,300 Interest expense 600 0 Selling expenses (b) 10,800 Operating income 21,800 (d) Sales (net) 96,000 (e) General expenses 7,900 (f) Net income (c) 21,600 Interest revenue 0 600 Gross profit 39,000 40,200

## Income Statement

Income Statement is one of the types of financial statements. It is also commonly known as statement of financial performance because it summarizes the profitability of a company by indicating the revenues, expenses and income.

The missing amounts are computed as follows:

(a)

 Sales (net) 96,000 Less: Gross profit 39,000 Cost of goods sold 57,000

(b)

 Gross profit 39,000 Less: General expenses 7,900 Less: Operating income 21,800 Selling expenses 9,300

(c)

 Operating income 21,800 Less: Interest expense 600 Net income 21,200

(d)

 Net income 21,600 Less: Interest revenue 600 Operating income 21,000

(e)

 Cost of goods sold 59,300 Add: Gross profit 40,200 Sales (net) 99,500

(f)

 Gross profit 40,200 Less: Selling expenses 10,800 Less: Operating income 21,000 General expenses 8,400