Smith Company has the following account balances, extracted from its multiple-step income...

Question:

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:

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 107,600
Sales Returns and Allowances (net Sales + Sales discount - Sales) -3,900
Sales Discounts -4,300
Net Sales (COGS + Gross Profit) 99,400
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 (Gross Profit - Selling & admin and operating expenses) 9,500

Learn more about this topic:

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What Is an Income Statement? - Purpose, Components & Format

from Accounting 101: Financial Accounting

Chapter 2 / Lesson 2
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