Smith Company has the following account balances, extracted from its multiple-step income statement for the current year. Compute the missing amounts.
Sales = $107,600
Sales Returns and Allowances = ?
Sales Discounts = 4,300
Net Sales = ?
Cost of Goods Sold = 54,600
Gross Profit = 44,800
Selling Expenses General and Administrative Expenses = 12,000
Total Operating Expenses = 23,300
Net Income = ?
Income statement is one of the basic and required financial statements of a company. This reports information regarding the company's sales/service revenue with the corresponding expenses incurred during the year. Income statement reports only income/loss information for the reporting period. Its accumulated amount is recorded under retained earnings (for corporations) and owner's equity (for single proprietorship).
Answer and Explanation:
|Sales Returns and Allowances (net Sales + Sales discount - Sales)||-3,900|
|Net Sales (COGS + Gross Profit)||99,400|
|Cost of Goods Sold||-54,600|
|Selling Expenses General and Administrative Expenses||-12,000|
|Total Operating Expenses||-23,300|
|Net Income (Gross Profit - Selling & admin and operating expenses)||9,500|
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from Accounting 101: Financial AccountingChapter 2 / Lesson 2